They need to restructure. Badly. This is the best way to do it.
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Interesting site, but doesn't mention film as far as I can tell. And if you use their search facility for 'film' the result doesn't fill me with confidence.
Originally Posted by tomalophicon
The point of Bankruptcy protection is to prevent "the plug being pulled" on a company's activities while a plan is made to realise, in the best way, the remaining value of the company, for the eventual benefit (or minimised loss) to creditors, shareholders, employees and everyone financially involved.
Originally Posted by Grainy
This plan could include the sale of assets, the sale of all or part of the company's businesses, continuation of all or parts of the business on a different scale and numerousd other considerations which may only become apparent after many months.
My guess (from working on insolvency matters a long time ago!)
is that there will be no immediate cessation of film making (or any other activities) until plans have progessed. The financial managers or administrators would not be doing their duty if they slashed the film making plants before their future potential value (if any) had been properly evaluated.
I assume they are filing chapter 11. If so then the company will continue to operate while it restructures its debt. This will basically amount to finding a deal among the creditors restructure the debt. The shares will continue to trade for a while, and then, when the bankruptcy process is over the old shares will be cancelled. At that point the shareholders will lose 100% of their investment. (That's 100%, as in they won't receive one red cent.)
If the company emerges from bankruptcy as an operating company then the current creditors will be the new shareholders. However, in doing this the creditors will agree to write down or completely cancel the debt owed to them by Kodak.
There is also the possibility that the company will be liquidated. Liquidation could occur if it becomes apparent that there are no viable business prospects for the company. I think this is somewhat unlikely in this case, but not impossible, given the sorry state of the market for Kodak's products.
If there are any of you who are thinking of buying Kodak shares hoping to make money when the shares go up after the company emerges from bankruptcy you need to hear the and remember the following. If you buy and hold Kodak shares you will lose every last penny of your investment. There is virtually no chance that the current shares will have any value at the end of the bankruptcy proceedings. I repeat, you will lose every last penny if you hold your shares. The only possible chance for a shareholder to make money is to use the shares as betting chips, hoping to make money by buying and selling on the fluctuations of the share price. However, even this is, in general, a losing strategy because this kind of betting game is less then a zero sum game.
I'd think that, for the reasons in my post above ^^^) that it will be business as usual for a while.
Originally Posted by Steve Smith
And I'm quite sure that running around like headless chickens will be the one thing which is not happening. Professional administration under Sect 11 is the one thing which could produce benefits, hopefully for we analog folk.
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A little more on bankruptcies. There is a kind of food chain at work in a bankruptcy. The government comes first, i.e. if the company owes any taxes then the government gets paid before anyone else. Next come any unpaid pay owed to employees. (This does not include pensions.) After that comes the secured debt. After that you have the unsecured debt. (Typical unsecured debt will be holders of unsecured bonds, and money owed to vendors.) Last in line you have the shareholders.
Each level in the food chain has to be made whole before the next level down can get anything. Thus, for example, the holders of secured debt must be made whole if there is any hope for the unsecured debt, and the unsecured debt must be made whole before there is any hope for the shareholders. This means it is hopeless for the shareholders. There is a simple reason for this, namely, the companies debts exceed the assets. This means there will be nothing left for the shareholders, and they will therefore lose every penny.
The really sad part of this deal is all the retired workers from Eastman Kodak that gave their working lives for the company are now left for DEAD without NOTHING - ZERO !! - I bet George Eastman rolled over in his grave tonight, and guess who they have to thank for all of this happiness ? The leader that ran Eastman Kodak into the ground - Antonio Perez !!
No, they need to do it wel!!
Originally Posted by Thomas Bertilsson
It does, but not as a consumer product. "Pro photo products" are under the commercial businesses tab. All the currently offered films are listed there. Portra gets the most prominent placement.
Originally Posted by cluttered
Originally Posted by railwayman3
The point of debtor-in- possession loans is to continue operations. The bankruptcy could, potentially, halt all operations without it. Most companies (suppliers, distributors, retailers) wold not enter into contract without the financing, which must be judicially approved as a priority loan of precedence above other creditor interests.