Kodak files for bankruptcy protection

Eastman Kodak Co. filed for Chapter 11 bankruptcy protection in New York after years of falling sales related to the decline of its namesake film business as digital cameras have taken over the market.

The photographic film pioneer said it had secured US$950 million, 18-month credit facility from Citigroup Inc. to help keep it afloat during bankruptcy proceedings. The company also named Dominic Di Napoli, a vice chairman at FTI Consulting Inc., as its chief restructuring officer to help steer the company through bankruptcy court.

"The board of directors and the entire senior management team unanimously believe that this is a necessary step and the right thing to do for the future of Kodak," chairman and chief executive Antonio Perez said in a statement.

"Chapter 11 gives us the best opportunities to maximize the value in two critical parts of our technology portfolio: our digital capture patents, which are essential for a wide range of mobile and other consumer electronic devices that capture digital images and have generated over US$3 billion of licensing revenues since 2003; and our breakthrough printing and deposition technologies, which give Kodak a competitive advantage in our growing digital businesses," he added.