According to the Wall Street Journal, Eastman Kodak Co. emerged from bankruptcy last week, more than two years after its January 2012 Chapter 11 filing.
Last month, a bankruptcy judge approved the company’s plan to exit bankruptcy protection. Kodak was forced to sell assets and shed unprofitable business lines to reorganize around its commercial-imaging business, which includes digital printers and motion picture film, according to the Journal.
According to court paperwork, the company was able to arrange $695 million in financing, and received $406 million in new equity investments from unsecured creditors.
“Next, we move on to emergence as a technology leader serving large and growing commercial imaging markets,” Chief Executive Officer Antonio Perez said in a statement. According to NBC News, Kodak failed to get a significant value for a number of its patents before the bankruptcy, which was a “crucial” reason the company had to sell its core businesses and rebrand itself.
“I take full responsibility for all the decisions we’ve made to create a new company. I will not take responsibilities for the legacies bequeathed to the company by someone else,” Perez said.
It is a great sign to see Kodak emerging from bankruptcy. As a debtor, a Chapter 13 bankruptcy would allow you to retain your assets, much as Kodak remained in control of its patents and business lines. A Chapter 13 bankruptcy also allows for the discharge of some or all unsecured debt, like credit card debt or medical bills. It is often the best bankruptcy plan for people who want to restructure their finances.
Chapter 13 is for debtors who have a steady income but have fallen behind on payments, or are in danger of having their home foreclosed or a car repossessed. Through this bankruptcy option, you are able to work out a payment plan, which can potentially allow you to keep your house or save your car.
It is important to work with a skilled attorney to understand how a repayment plan works and know all of your options. If you are struggling financially, you can contact our Washington DC and Maryland bankruptcy lawyer now for a free consultation. Our attorney can work with you to eliminate debt, while keeping your assets.
Law Firm of Kevin D. Judd
Judd’s Judgment: If you own a small business that has left you in financial ruin, Chapter 13 bankruptcy can help you rebuild personally.