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Photo pioneer Kodak exits bankruptcy with new focus

ROCHESTER (New York) — Kodak’s trip through bankruptcy is now a memory for the scrapbook as the photography pioneer, which invented the digital camera, emerged from Chapter 11 bankruptcy protection yesterday (Sept 3).

This Aug 28, 2013 photo shows an example of what a piece of silicon looks like with Kodak print inhibiting ink at Kodak research labs in Rochester, New York. Kodak print inhibiting ink is used for printing electronics. Photo: AP

This Aug 28, 2013 photo shows an example of what a piece of silicon looks like with Kodak print inhibiting ink at Kodak research labs in Rochester, New York. Kodak print inhibiting ink is used for printing electronics. Photo: AP

ROCHESTER (New York) — Kodak’s trip through bankruptcy is now a memory for the scrapbook as the photography pioneer, which invented the digital camera, emerged from Chapter 11 bankruptcy protection yesterday (Sept 3).

Eastman Kodak says it’s now a commercial imaging company serving business markets such as packaging and graphics. Chairman and CEO Antonio Perez says it’s on track for profitable growth.

“You can’t imagine how much I have been waiting for this moment ... This is a totally new company,” Chief Executive Antonio Mr Perez told reporters.

Kodak filed for bankruptcy protection last year, brought down by increasing competition, digital photography, and debt. Since then it has sold off many of its businesses and patents, while shutting down the camera manufacturing unit that made it famous.

It spun off its personal imaging and document imaging units to its pension plan.

Kodak says its old stock is cancelled as of yesterday. Creditors are getting shares in the reorganised company.

Founded in 1880 by George Eastman, Kodak was for years synonymous with household cameras and family snapshots. It filed a US$6.75 billion (S$8.6 billion) bankruptcy in January 2012, weighed down by high pension costs and a years-long delay in embracing digital camera technology.

The new company expects to have US$2.5 billion in revenue this year, Mr Perez said.

Kodak once employed more than 60,000 people and was one of the largest employers in Rochester, New York, where it is based. Mr Perez told reporters his most difficult task at the helm of the bankrupt company was dealing with hefty pension costs.

“I would not recommend anyone to file for Chapter 11, but if you have to deal with legacy costs, in my opinion, that’s the only way you can do it,” Mr Perez said.

The company in April resolved a crucial dispute with its British pension fund, which dropped a US$2.8 billion claim against Kodak. The fund also bought the company’s personalised imaging and document imaging businesses, to be named Kodak Alaris, for US$650 million.

The company said it has repaid its debtor-in-possession lenders and will receive about US$406 million in new financing.

Mr Perez, in charge since 2005, had been trying to steer the company towards consumer and commercial printers but was unable to stem the cash drain. The company has not posted an annual profit since 2007.

Chief executives are commonly ousted through the bankruptcy process, but Mr Perez remains top boss at Kodak, a result he attributed to his ability to do “what I needed to do” during the restructuring.

“When I came here, the previous board ... gave me three tasks — restructure the film business, create a completely new company that would have a future, and ... eliminate or settle the very large legacy costs that we had from the old company,” Mr Perez said.

Kodak had hoped to fetch more than US$2 billion through its bankruptcy process for about 1,100 patents related to digital imaging, but drew only US$525 million for the portfolio, which experts said was a crucial reason it had to sell core businesses and reinvent itself.

“We’re not the largest competitor in the market, but we’re offering the biggest differentiation in the market,” Mr Perez said. AGENCIES

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