Photography pioneer Eastman Kodak Company has filed for bankruptcy protection to re-organise its business so as to survive the intense competition.
Kodak company after its 130 years existence has many firsts to its credit, including the invention of its cameras as well as the use of its technology for taking the initial photographs of the moon's surface.
The company said in a statement that Kodak and its US subsidiaries has filed voluntary petitions for Chapter 11 business reorganisations in the US Bankruptcy Court for the Southern District of New York.
The company has attained a lifeline of USD 950 million from Citigroup Inc and expects to emerge from the restructuring in the year 2013 as a lean, profitable, digital, imaging and materials science company.
It further said its subsidiaries outside US are not subject to the court's proceedings.
Chairman and CEO Antonio M Perez said in a statement that after considering the advantages of Chapter 11 at this point of time and the entire senior management team unanimously believe that this is a necessary step and the right thing to do for the future of Kodak.
He added that their goal is to maximise the value for stakeholders, including their employees, retirees, creditors and pension trustees. They are also committed to working with their valued customers.
The firm has been struggling all the way to keep afloat and had already exited certain traditional operations, closing down 13 manufacturing plants and 130 processing labs and reducing its workforce by 47,000 since 2003.
Kodak expects that its busniess reorganisation would boost its liquidity in the US and abroad, monetise non-strategic intellectual property, fairly resolve legacy liabilities and enable the company to focus on its most valuable business lines.
It has made pioneering investments in digital and materials deposition technologies in recent years, generating about 75 per cent of its revenue from digital business in 2011.
The company said it has taken this step after preliminary discussions with key constituencies and intends to work toward a consensual reorganisation in the best interests of its stakeholders.