Eastman Kodak Company has filed for Chapter 11 bankruptcy protection as it attempts to transform into a digital company. Kodak has obtained a fully committed, US$950 million debtor-in-possession credit facility with an 18-month maturity from Citigroup to enhance liquidity and working capital, reports “Daily Disruption” (http://macte.ch/fDC2P).
The credit facility is subject to Court approval and other conditions precedent. Kodak says it believes it has sufficient liquidity to operate its business during Chapter 11, and to continue the flow of goods and services to its customers in the ordinary course.
Kodak expects to pay employee wages and benefits and continue customer programs, according to “Daily Disruption.” Subsidiaries outside of the U.S. aren’t subject to proceedings and will honor all obligations to suppliers, whenever incurred, the article says.