Kodak has filed for Chapter 11 bankruptcy protection in the US.
The troubled firm had been expected for weeks for file for bankruptcy, and the Kodak board was unanimous about the decision.
A $950 million bank loan will let Kodak keep operating through the Chapter 11 process, allowing it to continue providing products to customers, paying employees and honouring contracts with suppliers, it said.
CEO Antonio Perez said Chapter 11 was the best way for the firm to take full advantage of its growing printer business and its patent portfolio – worth $3bn in revenue to Kodak since 2003.
The firm today filed suit against Samsung for infringing five patents around digital imaging, following similar accusations against Fujifilm last week.
Digital future
The company’s troubles are largely pinned on the move away from traditional cameras and film to digital alternatives. However, Kodak said it has made progress in that area.
“The Company has made pioneering investments in digital and materials deposition technologies
in recent years, generating approximately 75% of its revenue from digital businesses in 2011,” the firm said in a statement.
Perez said the firm is already moving in the right direction. “At the same time as we have created our digital business, we have also already effectively exited certain traditional operations, closing 13 manufacturing plants and 130 processing labs, and reducing our workforce by 47,000 since 2003.”
The company’s restructuring is expected to be completed in 2013.
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