Just recently there was speculation that American icon Kodak would file for bankruptcy after years of losing revenue. Well, today they officially filed for bankruptcy protection.
Eastman Kodak, which was established in 1880, was one a thriving business, generating most of their revenue from the sale of film. But the digital camera came along, and film sales dropped off significantly.
Once digital cameras became popular films sale plummeted and Kodak began to struggle. Since 2004, Kodak only had one year where they made a profit. They have tried to avoid bankruptcy for years, but this proved to be no longer possible.
Like so many businesses, Kodak had to seek out a
bankruptcy attorney to offer solutions for their debt problem.
Kodak has secured a $950 million loan from Citigroup so that they can continue to operate normally during restructuring, according to the New York Times.
Kodak will continue selling off 1,100 digital imaging patents to alleviate some of their debt.
In their bankruptcy filing, Kodak listed assets worth $5.1 billion with debt liabilities of $6.8 billion.
Bankruptcy is the last resort for many companies. But sometimes, as the market changes a business cannot keep debt from mounting. A
bankruptcy lawyer can outline the options available to an ailing business.
The different bankruptcy structures can be hard to understand, but an experienced
bankruptcy attorney can tell which one will be the most effective for reducing or eliminating debt.
