326gug
19-01-2012, 11:44
IT'S OFFICIAL: KODAK IS BANKRUPT
Sam Ro|Jan. 19, 2012, 12:32 AM|8,610|5
Eastman Kodak has filed for chapter 11 bankruptcy in New York.
(See the full press release below.)
For months, shares of the ubiquitous film company have been under immense pressure as traders speculated the company would soon file for bankruptcy.
This speculation was amplified on September 30, when the Wall Street Journal reported that Kodak had hired Jones Day for restructuring advice. This move reaked of bankruptcy.
Days later, Kodak denied the bankruptcy rumors in a statement that was riddled with caveats.
News was quiet for around a month. Then Kodak exacerbated everyone's fears when it released its third quarter financial results. It reported a horrific net loss on falling revenue. The company confirmed that it was bleeding cash. And it also slashed its revenue and earnings guidance.
After that, things were quiet through the balance of the year.
Then on January 4, the Wall Street Journal once again reported that Kodak was preparing for a bankruptcy filing. Just the day before, the company was notified by the New York Stock Exchange that EK shares would be delisted if they did not soon trade above $1 per share.
On January 10, investors were given some hope when management announced it had restructured the company's businesses in an effort to cut costs and boost liquidity. The stock soared on the news.
Days later, Bloomberg reported that Eastman Kodak had met with Citigroup to provide emergency bankruptcy financing, citing unnamed sources. That was Friday.
And at 12:22 AM this morning, this announcement crossed the wires...
Read more: http://www.businessinsider.com/kodak-bankruptcy-19-2012-1#ixzz1ju5gzMnO
Sam Ro|Jan. 19, 2012, 12:32 AM|8,610|5
Eastman Kodak has filed for chapter 11 bankruptcy in New York.
(See the full press release below.)
For months, shares of the ubiquitous film company have been under immense pressure as traders speculated the company would soon file for bankruptcy.
This speculation was amplified on September 30, when the Wall Street Journal reported that Kodak had hired Jones Day for restructuring advice. This move reaked of bankruptcy.
Days later, Kodak denied the bankruptcy rumors in a statement that was riddled with caveats.
News was quiet for around a month. Then Kodak exacerbated everyone's fears when it released its third quarter financial results. It reported a horrific net loss on falling revenue. The company confirmed that it was bleeding cash. And it also slashed its revenue and earnings guidance.
After that, things were quiet through the balance of the year.
Then on January 4, the Wall Street Journal once again reported that Kodak was preparing for a bankruptcy filing. Just the day before, the company was notified by the New York Stock Exchange that EK shares would be delisted if they did not soon trade above $1 per share.
On January 10, investors were given some hope when management announced it had restructured the company's businesses in an effort to cut costs and boost liquidity. The stock soared on the news.
Days later, Bloomberg reported that Eastman Kodak had met with Citigroup to provide emergency bankruptcy financing, citing unnamed sources. That was Friday.
And at 12:22 AM this morning, this announcement crossed the wires...
Read more: http://www.businessinsider.com/kodak-bankruptcy-19-2012-1#ixzz1ju5gzMnO