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Details emerge on Kodak move into Chapter 11

March 26, 2012

Global sales down 36 percent and significant losses form all but one department in 2011.

ProPrint has revealed details at Kodak’s Consumer Digital Imaging Division and Graphic Communications Group that led the OEM into Chapter 11 bankruptcy protection, stating that US and global sales suffered throughout 2011.

US sales are said to have halved to $864 million (€653 million), and experienced a 36 percent decrease in global sales amounting to $1.7 billion (€1.2 billion).

Kodak’s bottom-line loss was $764 million (€577 million) including a restructuring charge of $133 million (€100 million), representing a 16 percent downturn of sales at $6 billion (€4.5 billion).

The OEM held a meeting with Kodak’s creditors in New York, with Court filings revealing that Kodak’s general unsecured creditors are owed many millions of dollars. A list of creditors is available at PrintWeek.

Lawrence Gamblin, President of Collins Ink, has noted his disbelief that unsecured creditors will be repaid regardless of the outcome of the Chapter 11 process: “The situation with Kodak will only work out positively for creditors if Kodak somehow manages to sell the patent portfolio they put on the market for a large number. Otherwise these are too many people in line ahead of unsecured creditors like Collins.

“Even if Kodak realises an enormous windfall from the patent sale, it is hard to see Kodak going back and repaying unsecured creditors.”

Collins Ink is currently owed $1.9 million (€1.4 million) and currently embroiled in a number of suits against the OEM, including contract breach and a motion to open Kodak’s books amid claims of non-fulfilment in business dealings.

Kodak has yet to file its reorganisation plan, which ProPrint expects “will include information on the likelihood of trade creditors being paid or not”.

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