Kodak Files for Bankruptcy Protection 1/18/2012

Aristophanes · Jan 24, 2012

Photo Engineer said:
Kodak announced today that it is unable to pay its utility bill as it has no reserve cash. The outcome or fallout from this is to be determined.

PE

Either that's a story from The Onion, or the $650 million the judge approved last week from Citigroup got lost in the mail.

Poisson Du Jour · Jan 24, 2012

I think the old Special K needs a lot more, heaps more, than $650 million. That won't bridge the gap between its assets and humungous debts. At all.

zsas · Jan 24, 2012

Here is a story re Kodak petitioning to keep utilities going (with typo and all.....)
http://www.whec.com/news/stories/S2465817.shtml?cat=566

Poisson Du Jour · Jan 24, 2012

Looks like the next stage of lights out. Kodak is literally a 137 year old beggar with cap in hand on the street corner. Not pretty.

Photo Engineer · Jan 24, 2012

And, in answer to questions or comments such as "what utility bill" and "the check must have been lost in the mail", that report is exactly as I saw reported on TV tonight and so that is all I said. Just for accuracy y'know!

PE

clayne · Jan 24, 2012

Who the heck waits this long to ask for help? If they truly are this bad off you would have figured they would have spoken up about it *much* earlier.

(for the pedants, yes I know I'm over-simplifying things here)

keithwms · Jan 24, 2012

clayne said:
Who the heck waits this long to ask for help?

I know, right? It's a form of criminal negligence. My question is whether this delay is due to the new terms of Chapter 11 or just really poor money management.

MattKing · Jan 24, 2012

I expect that the Bankruptcy filing resulted in their old bank accounts being frozen. It may be that the "paperwork" on the 650 million in interim financing is still not fully processed.

In our corner of the world, court orders take a while to be processed. It may be the same in Rochester.

cmacd123 · Jan 24, 2012

You go though their Presentaion and the only mention of "film" in the "business segment review" PDF is showing the declining projections for ECP. (Eastman Colour Print) I suspect that all other film volume is "in the Noise" compaired to that (rapidly declining) volume. They have different projections comparing the size of the market for them depending on the number if 3D screens (which use Digital Projection these days) and and also the switch to digital.

Why did Kodak never exploit the possibility of digital projection with their own technology, I think they had a unit which was intended just for captioning (subtitles) - They could have bought out say BARCO a few years back with petty cash.

Photo Engineer · Jan 24, 2012

Kodak makes a digital projection system for theaters. It is in use here in Rochester and elsewhere. I have seen it and it is quite good for digital, in fact among the best I have seen.

PE

KarnyDoc · Jan 25, 2012

MattKing, a bankruptcy doesn't mean the debtor's bank accounts are frozen; only their obligations to their creditors are, while they have a chance to reorganize their business and restructure their debt.

Dieter Zakas
Former bank teller and former bankruptcy petitioner

hoffy · Jan 25, 2012

This is a question for Scott Sheppard if he is still reading this thread:

I know you have intereviewed Kodak Reps before as part of your podcast. Have you approached anyone from Kodak for an interview? If you have, have they responded?

MattKing · Jan 25, 2012

KarnyDoc said:
MattKing, a bankruptcy doesn't mean the debtor's bank accounts are frozen; only their obligations to their creditors are, while they have a chance to reorganize their business and restructure their debt.

Dieter Zakas
Former bank teller and former bankruptcy petitioner

Not frozen by law, but just tell that to a bank where the customer is actually indebted to the bank (i.e. always owing on a line of credit).

EDIT: Banks tend to insist on all the paperwork being completed before they will rely on anything.

I expect as well that Kodak is essentially experiencing problems obtaining services and products on the usual terms - i.e. payment due within X days of invoice.

clayne · Jan 25, 2012

hoffy said:
This is a question for Scott Sheppard if he is still reading this thread:

I know you have intereviewed Kodak Reps before as part of your podcast. Have you approached anyone from Kodak for an interview? If you have, have they responded?

Look for the interviews with Scott DiSabato done sometime last year or so.

hoffy · Jan 25, 2012

clayne said:
Look for the interviews with Scott DiSabato done sometime last year or so.

OK, maybe I should change my statement.

Scott, have you approached anyone from Kodak since the Chapter 11 filing and asked them for an interview?

Photo Engineer · Jan 25, 2012

I think that none of you have read my last two posts regarding Kodak.

THEY ARE OUT OF MONEY AND CANNOT EVEN PAY THEIR UTILITY BILL(S)!!!! None, Nada!

At least that is the news here in Rochester. They are probably still awaiting that check, but IDK what is going on, and the paperwork is filed and a judgement has been made. Kodak must "recover" by February 2013 or face court action which may be involuntary dismemberment! (my own turn of phrase)

PE

Sal Santamaura · Jan 25, 2012

Photo Engineer said:
I think that none of you have read my last two posts regarding Kodak...

There's no need to frame that observation around your last two posts or even this thread. In general, those posting on Internet forums don't read others' posts. And, if they do, they tend to ignore or forget what was written above their own posts.

Ron, you'll feel much better when you give up hope.

Aristophanes · Jan 25, 2012

Photo Engineer said:
I think that none of you have read my last two posts regarding Kodak.

THEY ARE OUT OF MONEY AND CANNOT EVEN PAY THEIR UTILITY BILL(S)!!!! None, Nada!

At least that is the news here in Rochester. They are probably still awaiting that check, but IDK what is going on, and the paperwork is filed and a judgement has been made. Kodak must "recover" by February 2013 or face court action which may be involuntary dismemberment! (my own turn of phrase)

PE

We read your posts. Kodak has money, but in bankruptcy all money is the creditors unless a judge says otherwise, and cannot be disbursed without judicial approval. All that is happening is that Kodak is deferring its utility (creditor) bills until everyone is placed on the list of secured, unsecured, etc.

Kodak has the money. It just cannot go where Kodak wants it to go without an intermediary process.

The judge has already given Kodak about 1 year to reorganize.

keithwms · Jan 25, 2012

I have the solution! Kodak should move all their operations to Greece...

AlbertZeroK · Jan 25, 2012

Aristophanes said:
We read your posts. Kodak has money, but in bankruptcy all money is the creditors unless a judge says otherwise, and cannot be disbursed without judicial approval. All that is happening is that Kodak is deferring its utility (creditor) bills until everyone is placed on the list of secured, unsecured, etc.

Kodak has the money. It just cannot go where Kodak wants it to go without an intermediary process.

The judge has already given Kodak about 1 year to reorganize.

That does make some sense. Isn't that why they have a court appointed trustee? Basically, isn't that person in charge of Kodak's money and not Kodak?

It sounds like just a procedural issue of asking the judge to get the light bill paid. If it was worst that that, I would think they would have to put something in about payroll which is likely greater than $6 Million.

Any word on if the CEO has gone to a $1 / year salary?

DREW WILEY · Jan 25, 2012

Kodak's website is back up and you can read the latest announcement from yesterday. They have hard collateral in the form of property and facilities, though that is probably the last thing they'd wager. The lights and water are back on already etc. There's a whole legal infrastructure in place to keep the wheels greased during this kind of process. Might be spot shortages of this and that, but it's always been wise to keep a reserve of favorite film on hand. It will take a number of months to see how this really evolves. Things might turn out better or worse for us traditional film users. I've
seen chapter 11 situations rebound pretty good given a couple of years and a new set of eyes.

Toffle · Jan 25, 2012

DREW WILEY said:
Kodak's website is back up and you can read the latest announcement from yesterday. They have hard collateral in the form of property and facilities, though that is probably the last thing they'd wager. The lights and water are back on already etc. There's a whole legal infrastructure in place to keep the wheels greased during this kind of process. Might be spot shortages of this and that, but it's always been wise to keep a reserve of favorite film on hand. It will take a number of months to see how this really evolves. Things might turn out better or worse for us traditional film users. I've
seen chapter 11 situations rebound pretty good given a couple of years and a new set of eyes.

SHHHH, Drew!!!!!!!!! You'll wake the trolls. They're just napping; their happy dance over Kodak's impending doom musta tired them out.
(as for me, I'm hiding out in my darkroom... they'd never think to look for me there. )

PKM-25 · Jan 25, 2012

Toffle said:
SHHHH, Drew!!!!!!!!! You'll wake the trolls. They're just napping; their happy dance over Kodak's impending doom musta tired them out.
(as for me, I'm hiding out in my darkroom... they'd never think to look for me there. )

SuperBonusLOL...:w00t:

c6h6o3 · Jan 25, 2012

Sal Santamaura said:
Jim, did you ever figure out a way to get that (Canadian, I recall) Azo warm enough for your taste?

Sometimes. Don't ask me how. I never know why when I get good color. I just printed some negatives on the older, 1 minute Rochester grade 2 and they're perfect. But sometimes it's too cold. I've also had good luck with the Canadian Grade 3. I have gone to 4 ml KBr in the amidol which might be helping a lot. But this costs me a little dmax.

Photo Engineer · Jan 25, 2012

Here is a hint for you.

Batches of Azo emulsion could be controlled for contrast and speed by the use of Bromide and a dye. These also changed the tone slightly or perhaps allowed more manipulation of tone. In any event, this may be what you are seeing. A greater tolerance to tone manipulation.

Have fun. It is GWTW. Lodima may have replaced it but it is just not the same, and what will happen to toe rest of the Kodak products.

Did anyone take a look at the Kodak "plan"? Page 11 is quite interesting.

PE

Kodak Files for Bankruptcy Protection 1/18/2012

Aristophanes

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Kodak Files for Bankruptcy Protection 1/18/2012

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