The Kodak brand may bring us back to our childhood, but we are quickly snapped back to reality with the announcement of their bankruptcy filing. It’s been going for nearly two years now, but the company hopes to have the case closed soon. Earlier this month, they filed what is believed to be their final total of costs for the Chapter 11 bankruptcy: $245.2 million. That’s $2.1 million more than the previous amount presented in late 2013.
Their reorganization plan took effect in September 2013. At that point, the company canceled stocks, issued new shares to IOU holders and sold some businesses to a pension fund.
The case continued since then because the Kodak General Unsecured Creditors Trust sued various companies that had been doing business with Kodak before it filed for bankruptcy. They are hoping to get some of the money back that Kodak spent before it filed. There are also about 7,000 requests and claims for payment that the court is ruling on, which were filed against Kodak.
Although Kodak is still dealing with a mess of unfinished cases against them, they want the court to close their bankruptcy case. According to Kodak, “The entry of a final decree is essentially an administrative task.” This motion would allow them to stop paying the party that does the administrative paperwork for their bankruptcy, as well as speed up their ability to make a “final payout to unsecured claims.” A hearing on the matter is scheduled for Dec. 9 in New York City.
As this case shows, bankruptcy is not always as easy as presenting your debt, reorganizing and walking away. There are many parties that have to be taken into account, which can make the process drawn-out and complicated.
Source: Democrat & Chronicle, “Kodak seeks end to bankruptcy, again,” Matthew Daneman, Nov. 12, 2014