By Lilia Guan

 

Eastman Kodak Company announced in January that it and its United States (US) subsidiaries filed voluntary petitions for chapter 11 business reorganisation in the US Bankruptcy Court for the Southern District of New York. 

 

The business reorganisation is intended to bolster liquidity in the US and abroad, monetise non-strategic intellectual property, fairly resolve legacy liabilities and enable the Company to focus on its most valuable business lines.

 

In a statement to Government News, a media spokesperson said subsidiaries outside of the US are not subject to proceedings and will honour all obligations to suppliers, whenever incurred.

 

“As a result, our expectation is that this action will not have any impact on commercial relationships with Kodak operations based outside of the US – including Kodak Australasia – who will continue to pay all invoices on time and meet all contractual obligations,” they said.

 

The company has made pioneering investments in digital and materials deposition technologies in recent years, generating approximately 75 per cent of its revenue from digital businesses in 2011.

 

Kodak has obtained a fully-committed, US$950 million debtor-in-possession credit facility with an 18-month maturity from Citigroup to enhance liquidity and working capital.

 

In a statement to the media the company stated, the credit facility is subject to court approval and other conditions precedent.

 

“The company believes that it has sufficient liquidity to operate its business during chapter 11, and to continue the flow of goods and services to its customers in the ordinary course,” Kodak stated.