Everyone knows about Kodak, but Kodak has now declared bankruptcy. I will share the Kodak bankruptcy case with you. Welcome to read!
Business Court Case: Kodak is about to end bankruptcy
The American Eastman Kodak Company is preparing to file for bankruptcy protection within a few weeks. If this giant in the photographic film industry really goes bankrupt, it will follow the example of famous American companies such as the Polaroid Company and be eliminated by the times.
A last-ditch effort to sell patent rights
The report quoted people familiar with the matter as saying that the 131-year-old company is still making its final efforts to save itself and hopes to raise funds by selling part of its patent rights. . However, Kodak has begun preparations to apply for bankruptcy protection, including discussing with banks to raise approximately US$1 billion to ensure that the company continues to operate during bankruptcy protection. A Kodak spokesman said: "We do not comment on market rumors and speculation." ?
Reports say that Kodak may file for bankruptcy protection as early as this month or early February; during the bankruptcy protection period, the company will continue to repay debts and operate normally. By then, Kodak will sell approximately 1,100 patents under court supervision.
If Kodak really files for bankruptcy protection, it will join the ranks of well-known American companies that have been eliminated because of their failure to adapt to the rapid changes in their business models. Kodak invented the digital camera in 1975, but failed to turn this new technology into a profit growth point.
To fill its shrinking film business, Kodak operated chemicals, bathroom cleaners and drug-testing equipment in the 1980s and 1990s, and later entered the printer industry under CEO Antonio Perez.
The status was once equivalent to that of Apple
Former employees found it inconceivable that this well-known company, which once almost dominated the film industry, was stuck at a critical moment of life and death. Once upon a time, on every "Salary Bonus Day" established by Kodak founder George Eastman, Kodak would pay bonuses to all employees based on corporate performance. After receiving the bonus, employees can buy a car or go to a fancy restaurant to celebrate.
Robert Shanebrooke, 64, entered Kodak in 1967. Former Kodak employees who were his contemporaries say that Kodak's status at the time was equivalent to Apple and Google today.
Shanebrook recalled that Kodak was full of talents at that time. During lunch time, some young people crowded into the auditorium to watch movies, while other employees played ball on the company's basketball court. We instilled in ourselves the awareness that we can do anything and are invincible.
Kodak began to decline in the 1980s as overseas competitors began to capture market share in the film industry. Later, Kodak had to face the rise of digital cameras and smartphones. In 2003, Kodak announced that it would stop investing in the film business.
After news broke that it was about to file for bankruptcy protection, Kodak’s stock price fell 28% on the 4th, closing at 47 cents per share.
Discussing loans with banks
Since Perez became Kodak’s CEO in 2005, Kodak has only had one year without losing money. Perez was previously in charge of the printer business at Hewlett-Packard in the United States. He pursued a business strategy of making money through patent litigation and transfer at Kodak. This strategy was finally unsustainable in 2011.
To fill the funding gap, Kodak decided to sell some of its digital patents in August last year. Some bidders are worried that Kodak may file for bankruptcy protection and are reluctant to make a move. Kodak had approached hedge funds in the hope of raising a "bridge loan" to support operations until the patents were sold, but failed to do so. Now, Kodak is discussing loans with major banks including JPMorgan Chase & Co., Citigroup, Wells Fargo and others. Kodak is also negotiating bankruptcy financing options with creditors and institutions such as Cerberus Capital Management. What creditors consider is whether Kodak's printer business is worth supporting, or whether all of Kodak's value lies in patents.
Digital technology ends film Kodak
Eastman Kodak Company Kodak, referred to as Kodak Company, is the world's largest manufacturer and supplier of imaging products and related services, headquartered in New York, USA Rochester, Texas, is a listed company listed on the New York Stock Exchange, with operations in more than 150 countries and regions and approximately 80,000 employees worldwide.
Kodak Company has always been a world leader in the fields of image capture, sharing, output and display. For more than 100 years, it has helped countless people retain beautiful memories, exchange important information and enjoy entertainment time. The company's global revenue in 2002 reached US$12.8 billion, more than half of which came from markets outside the United States.
As the trump card brand in the photosensitive industry, Kodak has created a series of brilliant achievements. However, the rapidly changing market and rapidly developing technology make every company face challenges, and Kodak is no exception.
The first is the fierce price competition from the market field. Self-labeling (or retailer branding) drives down the price of Kodak products by 40%. In Eastern Europe and developing countries, cheap film also poses a great threat to Kodak, because people with low income levels pay more attention to price than brand and quality. Kodak has implemented a series of price counterattack strategies, which have worked to a certain extent, but it still cannot completely eliminate the negative impact of the price war.
Another challenge facing Kodak comes from the impact of digital imaging technology on traditional imaging technology. High cost, bulky equipment, and serious pollution are difficult problems to solve in the production and printing process of negatives and photo papers. Large size, inability to store permanently, and difficulty in finding are the inconveniences brought to people by using negatives and photo papers.
With the emergence of digital imaging technology, photography technology gradually bids farewell to film and photo paper. A palm-sized optical disc can store thousands of photos; then, the photos can be printed directly through a computer printer? In short, digital imaging has become the mainstream of the market, and film and photo paper are basically no longer available except for some professionals. Ask. This technological revolution declared the film industry to be in a state of near death.
As the leader in photosensitive technology, Kodak does not have an innate advantage in the new technology field of digital photography. The popularity of digital imaging technology means that Kodak loses the wealth brought by film and photo paper. profit. Now, Kodak seems to be withdrawing from people's lives along with the film.
The birth of the point-and-shoot camera
In 1877, the camera had been invented, but the photographic equipment at that time was extremely complicated, including a large black tent, a water tank, and a thick What is the container of the glass photosensitive plate? What is more complicated is the operation. Without specialized knowledge and technology, no one can control this behemoth.
When George Eastman, the founder of Kodak, came into contact with a camera for the first time, he couldn’t help but wonder: Can the camera be made smaller? Eastman’s unremitting pursuit finally brought great success to the photosensitive industry. An epoch-making revolution has come. In 1886, a small, lightweight camera that everyone could use was born. Eastman gave it a small but loud name: "Kodak".
In China, people affectionately call it "point-and-shoot camera".
Warm Family Memories
Another focus of Kodak’s efforts to build brand loyalty is to establish a clear and powerful brand identity.
Kodak’s early advertisements mostly showed family scenes with children, dogs and friends, and most of them were easy-to-shoot shots that happened around us. In the 1930s, people could often hear on the radio "This is the Kodak moment, don't let it slip away" and "Kodak connects every moment". In the moving scenes, these advertising slogans deeply penetrated into the consumer consciousness. In the minds of consumers, consumers naturally associate having a happy time with the name "Kodak".
The King of Film in the World
Kodak considered very early on that with the increase in camera sales, there would definitely be a large demand for film printing services. So while everyone was scrambling to produce "instant automatic" cameras, Kodak had focused its production capabilities on film production and printing.
Sure enough, Kodak's film sales soared and it almost monopolized the entire printing market. After the "mini" camera was launched, Kodak used the same method to lower the price to make it affordable for everyone. As a result, the sales of Kodak's film, cameras and related equipment soared, despite Agfa's efforts to use intensive methods. The old method of supply, Fuji and Sakura did not hesitate to reduce prices, but they could not match the sales volume of Kodak film.
Dominant in the photosensitive industry
In 1930, Kodak accounted for 75% of the world's photographic equipment market and 90% of its profits.
In 1964, the instant automatic camera was launched on the market. 7.5 million units were sold that year, setting a world record for camera sales.
In 1966, Kodak’s overseas sales reached US$2.15 billion, ranking 34th in Fortune magazine, and 10th in net profit. Agfa, which was ranked second in the photosensitive industry at the time, had only the same sales volume. l/6.
In 1990 and 1996, among the top 10 brands ranked by the brand consulting company, Kodak ranked 4th and was the well-deserved overlord in the photosensitive industry.
News from this newspaper As a former giant in the photography industry, the old film hero Kodak is now facing the risk of delisting. Kodak announced on Tuesday that it had received a warning from the New York Stock Exchange because its average closing price had fallen below $1 for 30 consecutive days. If the stock price still does not improve in the next six months, Kodak will face delisting and delisting.
At the close of trading on Tuesday, Kodak’s share price fell to 63 cents. Because its average closing price has fallen below $1 for 30 consecutive days, the New York Stock Exchange issued a warning. Kodak said that due to the liquidity challenges faced by the company, there is no guarantee that it will meet the listing standards of the New York Stock Exchange within the next six months. According to the regulations, if Kodak wants to avoid being delisted, it must have a closing price of $1 or more in the next six months, and the average share price in the 30 days before that day must also be $1 or more. at $1. Unless the company raises $500 million by issuing new debt or selling patents, it will be difficult to survive 2012.
Early morning news on January 5, Beijing time, according to foreign media reports, Kodak is preparing to file for bankruptcy protection in accordance with Chapter 11 of the U.S. Bankruptcy Code in the next few weeks, provided that the company sells a batch of The patent plan failed.
According to anonymous sources, the struggling photography icon is in talks with potential lenders to apply for a total amount through so-called debtor-in-possession financing. Negotiations for approximately $1 billion in bankruptcy protection would allow the company to continue operating during bankruptcy. Currently, Kodak has approximately 19,000 employees. According to one source, Kodak may file for bankruptcy protection as early as this month or early February.
The so-called debtor-in-possession financing means that once a company successfully files for bankruptcy protection in accordance with Chapter 11 of the U.S. Bankruptcy Code, it can stop repaying creditors. Interest payments are made until a court-approved restructuring plan is proposed. Therefore, creditors cannot liquidate a company that has applied for bankruptcy protection to pay off debts. This is equivalent to the company being temporarily occupied and controlled by the debtor, so it is called "debtor-held bankruptcy assets".