Rochester, N.Y.—Eastman Kodak Co. filed for Chapter 11 bankruptcy protection Thursday, as the 131-year-old company failed to raise enough cash to maintain its turnaround effort.
According to Kodak,
it has obtained a $950 million credit line from Citigroup which, subject to court approval, will enable the company to operate through its bankruptcy protection period. Kodak was unsuccessful in raising funds from the sale of its patent portfolio as it had hoped.
Kodak's turnaround hinges on its ability to shift from its traditional film and consumer orientation to a digital and b-to-b model. Kodak recently introduced a personalized digital print process, work-flow software and a consultancy to develop, execute and measure b-to-b multichannel campaigns, and said about 75% of its revenue is currently coming from digital businesses.
The company lost $222 million
in its third fiscal quarter.