Lawyer Referral Service

LRS Blog

Posted by: Maricopa Lawyers on Sep 5, 2013

Kodak officially ends bankruptcy status earlier on Tuesday, a status 20 months in the making. The company has finally worked its way out from a Chapter 11 bankruptcy originally filed earlier in January 2012.

Antonio Perez, the most inducted CEO of Eastman Kodak Co. in 2005, was pressed by the board to achieve three major things: reinvent its traditional film business, create a new company, and sort out the massive legacy costs inherited from its days as a larger company.

Perez reports that he has now achieved the first two goals since taking the position. He went on to suggest the third goal could never be addressed until Kodak’s Chapter 11 bankruptcy was a thing of the past.

In a telephone interview with the Rochester (N.Y.) Democrat and Chronicle, Perez said the issue of legacy costs “was painful for many people, including me. It was the right thing to do for the ongoing Kodak. It was the right choice.”

Perez went on to say, “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.”

The legacy costs arrived in many forms. Such costs included money the company was spending on retiree health care within the United States, and billions of dollars shortfall within Kodak’s United Kingdom pension fund. Their interference prevented Kodak from continuing to grow and experience success.

Kodak’s emergence from bankruptcy also sees that the company will cancel various bonds that were set to mature between this year and 2021.

Perez detailed the company’s past and future by saying, “… I could say that approximately 50% of my conversations with customers has been in many ways defending why we had to file for Chapter 11 and why we’re going to be successful. Now I’ll be able to spend 100% of my time talking about their business and our business.”