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Kodak expects to exit bankruptcy in Q3 2013
Now with a patent sale, new financing and asset offloads under its belt, Kodak's homing in on when it might emerge from Chapter 11 bankruptcy. In January, the imaging giant predicted it might finally exit its financial default by mid-2013, and now it's filed paperwork with a New York court indicating it's on track to meet that goal sometime during its third quarter this year. In addition to the timeline update, the Plan of Reorganization and Disclosure Statement outlines how the firm's debts have been settled and its future plans, which place heavy emphasis on its commercial imaging business. A hearing for the document and associated strategy is anticipated to be scheduled in mid-June, and creditors will arrange a vote afterwards to decide if everything's to their liking. Kodak's certainly not out of the woods just yet, but it's plodding steadily towards the clearing. [Image credit: Viktor Nagornyy, Flickr]
A123 Systems becomes America's latest EV battery maker to file for bankruptcy
Having been riddled with setbacks, including a major recall of faulty batteries supplied to Fisker Automotive, Michigan's favorite EV battery maker A123 Systems has filed for bankruptcy. It has also announced the sale of its main business units to rival Johnson Controls in a deal pegged at $125 million -- a sad fraction of the billion dollars it raised since it launched in 2001 (not least from government grants). It seems that neither fresh lithium ion innovations nor a potential deal with Chinese investors were able to keep the company out of the red, which leaves A123 on the road to nowhere -- right behind that other DoE-sponsored hopeful, Ener1.
Kodak files Chapter 11 bankruptcy, expects to complete restructuring by 2013
Apparently suing Samsung (again) wasn't the only pressing business for Kodak today, as it just announced it has -- as expected -- filed for Chapter 11 business reorganization in New York. You can read the details in the press release after the break or at the Kodak Transforms website, where Chairman and CEO Antonio Perez is quoted saying he hopes Kodak will "emerge a lean, world-class, digital imaging and materials science company". The company has obtained $950 million debtor-in-possession financing, which it claims will provide the liquidity needed to continue operations during the restructuring. As far as its recent parade of lawsuits against Samsung, Apple and HTC, Perez comments on "monetizing non-core IP assets" so we'd assume its lawyers will stay busy going forward.
TerreStar makes it official, files for Chapter 11 bankruptcy
Teetering no longer. According to Reuters, satellite phone maker TerreStar has filed for Chapter 11 bankruptcy to protect itself from liabilities in the range of $1.6 billion. As expected, a restructuring is in order, with Blackstone Group LP providing financial advice for such a move. One of TerreStars' creditors, EchoStar, is offering $75 million in financing to help keep the company operate while it goes through the bankruptcy. Shame that it's the icing on the cake for its Genus, having just launched on AT&T not one month ago. Them's the breaks. [Thanks, Brian]
