Kodak Bankruptcy | Profitable in 2013 YTD during Chapter 11
Eastman Kodak Co. is showing signs of success in in Chapter 11 proceeding.
For April, Kodak had revenues of $127.8 million — which is similar to its results in January and February. The standout is March with revenues of nearly $170 million. Eastman Kodak Company reported on April 29, 2013 $283 million in consolidated net earnings in 1Q2013, which is significantly different than the $366 million loss in the prior year quarter. According to Kodak, the profitable quarter reflects improved results of the Commercial Imaging segments and includes a $535 million gain recorded on the sale of Kodak’s digital imaging patent portfolio, partially offset by a $77 million non-cash goodwill impairment charge related to the patent sale.
In April, Kodak has a gross profit of $9.1 million, as it has every month so far in 2013. That’s a major change from the months of gross losses immediately after January 2012, In April 2012, for example, the monthly report showed a gross loss of $11.7 million.
The Kodak bankruptcy efforts have resulted in a considerably leaner company in comparison to April 2012. Its U.S. operations in April 2013 spent $26.7 million on administrative, selling and general costs, vs. $34.9 million in April 2012. It has sold off or ended lines of business, closed numerous offices and terminated the health care benefits it provided thousands of retirees.
Chapter 11 Plan of Reorganization filed on April 30
On April 30, 2013, Kodak filed its Plan of Reorganization and Disclosure Statement with the U.S. Bankruptcy Court for the Southern District of New York.
When Hostess Brands Inc. went under in late 2012, “All anybody cared about was, ‘Where am I going to get my Twinkies?’ The brand name, not hurt at all,” Rock said. “Troy-Bilt, Cadillac, they’re not damaged (by past bankruptcies). They’re still popular. A Kodak product has always been viewed as a quality product.”
“I cannot remember a case that I’ve ever been associated with in any way where so many people wanted the company to succeed but so few people thought it actually could,” said John C. Ninfo II, a retired United States bankruptcy judge. “For some, the bankruptcy proceeding has been a sorrowful thing, like losing a family member.”
Kodak expects to emerge from Chapter 11 protection in 3Q2013.[/one_half_last]
Other Bankruptcy Filings of Iconic Companies
A number of iconic companies have recently entered bankruptcy protection, including Readers’ Digest, Hostess Brands Inc., maker of Twinkies and Wonder Bread, and Eastman Kodak Co., inventor of Kodachrome and the Instamatic camera.