The Eastman Kodak Company is set to appear in front of a bankruptcy court next month to request an extension of its protection until 28 February 2013, as the company continues to reorganise its operations.
"Kodak's case is large and complex, involving some $5bn in assets, global operations, thousands of contracts and leases, thousands of potential creditors, and ongoing asset sales," the company says in a statement. "Kodak's progress includes the successful stabilisation of its business, the development of its emergence plan, significant operating improvements, the expansion of customer and vendor relationships, and substantial cost reductions."
As part of these cost reductions, Kodak had already announced its intentions to sell its paper and film businesses. But now the firm is also putting an end to its consumer inkjet printing business.
"Kodak has continued to manage its consumer inkjet business for profitability, and the company announced today that, starting in 2013, it will focus that business on the sale of ink to its installed base, and wind down sales of consumer inkjet printers," says the company. "Kodak expects that this decision will significantly improve cashflow in the US beginning in the first half of 2013."
It remains unclear how large Kodak's installed base of consumer inkjet printers is, and how long it will have to sustain that business.
Kodak now plans to transform itself to "focus on commercial, packaging and functional printing solutions and enterprise services", according to Antonio M Perez, Kodak's chairman and CEO. "As we complete the other key objectives of our restructuring in the weeks ahead, we will be well positioned to emerge successfully in 2013."
So far, Kodak has shed more than 2700 positions, and expects to make 1200 further employees redundant – up 200 from the 1000 previously announced. When completed, Kodak will have reduced its headcount by 23 percent, resulting in savings of $340m per year.
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