Kodak files for bankruptcy

Eastman Kodak Co. filed for bankruptcy Thursday in a bid to survive a liquidity crisis after years of falling sales related to the decline of its namesake film business.

The once-iconic photographic film pioneer, which had tried to restructure to become a seller of consumer products like cameras, said it had also obtained a US$950-million, 18-month credit facility from Citigroup to keep it going.

“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 M. Perez said in a statement.

Kodak said it and its U.S. subsidiaries had filed for Chapter 11 business reorganization in the U.S. Bankruptcy Court for the Southern District of New York. Non-U.S. subsidiaries were not covered by the filing, it added.

Kodak, whose cash fell to $862 million at the end of September from $1.4 billion a year earlier, is scheduled to report fourth-quarter results on Jan. 26.

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