The company sought bankruptcy protection last January this year and is now asking the court for more time to submit its plan until February 28. Asking for an extended exclusivity period can prevent its creditors to file competing plans.
After Kodak filed for bankruptcy protection, the company right away started boosting its cash stocks by selling off businesses, streamlining its operating costs, and cutting jobs, aiming to emerge from court protection in 2013.
The Rochester, N.Y.-based company announced early this year that it would stop making digital cameras, digital picture frames, and pocket video cameras. It also sold its online photo service business,Kodak Gallery, to Shutterfly Inc., for $23.8 million earlier in the year.
Kodak revealed in August of this year that it was selling its document imaging and personalized imaging businesses so it can concentrate its resources on its business and printing services. Its imaging division produces scanners and provides associated services and software while the personalized imaging business includes still camera film products and photo paper. This business division also handles photo products at theme parks and other places and events.
Kodak has a portfolio of patents and it plans sell them off as well. It indefinitely postponed an auction of the portfolio of its imaging patents early this month due to some undeclared reasons. It apparently has some reservations in selling off its patents after it told the court at the time that it was looking for other options like keeping the patents and creating opportunities by licensing its technology.
Friday of this week, Kodak declared that it will now focus its consumer inkjet business by selling ink for its current printers. It will also reduce the production and sales of its printers next year.
The new strategy will ensure that the company can channel its resources on packaging and commercial printing, together with other services, with the aim of earning more cash in the United States during the first six months of 2013.
During the company’s heyday, it has around 150,000 workers around the world. Kodak cut off around 2,700 jobs this year. Another 1,000 jobs was planned further this year, but the company increased the number to 1,200.
According to the company, cutting its workforce by 23% would save around $340 million every year, which means that its total number of workers would only now be reduced to 13,100.
The company traces its roots during its foundation in 1880 and popularized the Brownie camera in 1900, making photography affordable to many people around the world. The introduction of Kodachrome film in 1935 boosted the company’s fortunes and established the product as the most successful amateur color film.
However, the fast changing technology landscape has caught up with Kodak. It is now struggling to survive against the onslaught of digital photography and fierce competition from Japan’s Canon.