Last week American photography pioneers Kodak declared Chapter 11 bankruptcy after they ran into a cash shortage.
After years of cutting costs and other efforts to turn their business around they had no alternative but to seek bankruptcy protection and now a judge has given them a year to emerge from bankruptcy.
Kodak received a $950 million dollar loan from JP Morgan so they can continue to operate normally. They will also attempt to generate revenue by selling off 1,100 patents.
Kodak is also involved in another legal dispute with Apple Inc., Research in Motion and Samsung Electronic over patent infringement. They were hoping for a decision on the $1 billion patent dispute but any ruling on the two year case will be delayed until September.
The Eastman Kodak company has not made a profit since 2007 and dropped from 70,000 employees in 2002 to 19,000 employees.
For some companies bankruptcy is their only hope to survive. A
bankruptcy attorney can offer a number of solutions to a company drowning in debt.
There are a number of structures available to a troubled business. Kodak filed for Chapter 11, which will allow them to restructure their debt and save their iconic business.
A
bankruptcy lawyer can determine which filling will be best for company depending on the amount of their debts. Before making such an important decision, a person or a company should consult with a
bankruptcy attorney.
