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Kodak agrees to sell Gallery online photo service to Shutterfly for $24 million
Remember that Kodak Photo Gallery online picture service that we didn't use? It appears that years of shipping packed-in with the company's cameras have netted it some 75 million users, making it an asset that now-bankrupt Kodak has agreed to sell off to Shutterfly for $23.8 million. The deal isn't quite done yet, with Shutterfly's offer entered as a stalking horse bid while other buyers may also submit proposals before the process is targeted to close in the spring. This is all a part of Kodak's pivot away from digital cameras and related products as it focuses on enterprise services and desktop printers instead. Under the current agreement, current gallery customers uncomfortable with being shipped off to Shutterfly will be able to opt out and either download their stored pics or buy them on DVDs. Otherwise, their accounts will be transferred in a way that is "preserved, and protected" -- that is to say, almost entirely unlike the way they're handled on iOS and Android.
Elpida files for bankruptcy protection as debts of $5.5 billion are revealed
DRAM Maker Elpida has petitioned for a corporate reorganization (the equivalent of Chapter 11 or Administration) as the company has revealed it is close to collapse. President Yukio Sakamoto is expected to resign as the scapegoat for the calamity as it files for protection at the Tokyo District Court. The company, founded in 1999 as NEC Hitachi Memory Inc. has produced DRAM Products since 2000. It founded three wholly-owned subsidiaries: Tera Probe, which conducted wafer probe testing, Akita Elpida Memory Inc. which handled the back-end processes of DRAM production and Rexchip Electronics Corp, which handled the front-end. After a blockbuster period of invention, a fall in prices and the global recession in 2006 forced the company to enter restructuring with a 30 billion Yen ($372.54 million) Government-backed loan. That swathe of cash was used to pump more money into investment and R&D, but the combination of strong Yen and the Thailand flooding has once again forced the company to come clean about its finances. It revealed today that it had debts of 448,033 million Yen, or $5.5 billion and without the protection of the court wouldn't last too much longer. Times of Japan points to the strength of Samsung's memory offerings as being a big contributor to Elpida's collapse, with president Sakamoto saying that DRAM is now as cheap as a "rice ball."
Kodak gets court approval to borrow $950 million, end theater sponsorship
Kodak took another step along the road to recovery yesterday, after receiving court approval to borrow $950 million in restructuring funds. Nearly a month after the camera maker filed for Chapter 11 bankruptcy, US Bankruptcy Judge Allen Gropper granted Kodak's request on Thursday, allowing the company to continue operations during its ongoing transition. Gropper's decision, handed down in a Manhattan court, follows a series of negotiations between Kodak and its lenders, and adds an extra $300 million to the $650 million awarded during January's Chapter 11 filing. The company is also allowed to end its sponsorship of the Kodak Theatre in Los Angeles, after successfully arguing that doing so would be in the best interest of Kodak and its creditors. Under the deal, Kodak is obliged to pay $72 million over the course of 20 years. It currently shells out $3.6 million per year and still has $38 million in outstanding payments, but Kodak's lawyers argued that the agreement was too costly. Kodak Chairman and CEO Antonio Perez issued the following statement in response to yesterday's decision: "Today's agreement is another step towards ensuring that Kodak is positioned to execute on the goals the Company set out last month: Bolster our liquidity in the U.S. and abroad, monetize our non-strategic intellectual property, fairly resolve legacy liabilities, and enable Kodak to focus on its most valuable business lines."
Apple to pursue legal action against bankrupt Kodak
Bankrupt Kodak has been upfront about its strategy to generate revenue from its robust patent portfolio through litigation. In the past year, Kodak has sued Apple, HTC, RIM, Samsung, and Fujifilm using various imaging recording and processing patents. Apple isn't taking this lying down and, as Bloomberg reported, Apple has asked a bankruptcy judge to allow it to sue Kodak over a patent infringement claim. Apple contends Kodak is infringing on patents that cover technology used in printers, digital cameras and digital picture frames. Apple revealed in its US Bankruptcy Court request that it intends to file an infringement complaint with the ITC and a lawsuit in the US District Court. Apple argues that bankruptcy doesn't protect a company from a patent infringement lawsuit. Kodak can ask the court to suspend the District Court case until the ITC makes a decision on the infringement, but Apple said it will go ahead with the case in the meantime.
Apple wants to file patent lawsuit against Kodak, fully aware that Kodak's bankrupt
Poor Kodak just can't catch a break these days. Nearly a month after filing for Chapter 11 bankruptcy and mere days after shuttering its digital camera business, the sputtering company now finds itself the target of no less a behemoth than Apple. Yesterday, Cupertino's legal team asked a US Bankruptcy Court for permission to go after Kodak on two legal fronts: with a patent infringement lawsuit in a Manhattan district court, and a corollary complaint in the ITC. According to Bloomberg, Apple's patent suit focuses on technologies that Kodak uses in its line of digital cameras, printers and digital picture frames. Unfortunately for Kodak, printers are one of the product areas it recently decided to focus on, as confirmed in last week's restructuring announcement. Salt, meet wound.These two companies, of course, have been involved in an ongoing ITC battle over Kodak's image transfer technology, with the latest salvo coming last month, when the camera company launched a fresh batch of litigation against both Apple and HTC. If the bankruptcy court grants Apple's request, the company will head straight to court, in the hopes of obtaining a block against Kodak's allegedly infringing products. Kodak, meanwhile, could file a request to hold off the district level case until the ITC ruling comes through, though Apple said yesterday that it would press forward, regardless. The company was also quick to point out that it's not legally bound to request permission to sue a court-protected bankrupt company, but did so "out of an abundance of caution," which is really considerate, if you think about it.
Kodak to shutter digital camera production this year
This year has not been a kind one for Kodak. Last month, the photography pioneer announced that it was filing for bankruptcy (and suing Samsung, incidentally), and now the company has let it be known that it will be dropping out of the digital camera business -- and then some -- marking an end to its line of digital point-and-shoots, pocket camcorders and digital photo frames. Production will end the first half of this year. The future for the company will hold printers, brand licensing, enterprise services and photo labs. Kodak will, however, continue to honor warranties on existing products.
Battery maker Ener1 files for bankruptcy, tied to Think Global's bumper
Nobody was that surprised when EV maker Think Global drove off into the Chapter 11 sunset, but now it's towed an even bigger company along with it. Ener1 invested heavily in Think and also manufactured the lithium-ion batteries for its cars, but all it got in return was a lethal $69 million hole in its balance sheet. The company was de-listed from Nasdaq last month and now it's seeking bankruptcy protection to restructure $81 million in debts. If it fails to get its finances in order, organizers of the 2014 Winter Olympics may need to look for another power source.
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.
Kodak's stock price exploded after restructuring announcement
It's only January 10th and Kodak's already having a terrible year: six days ago the beloved photography company was preparing for Chapter 11, but today its stock price leapt by 45 percent (and counting). The cause? The announcement of a new plan intended to pull the troubled company into the 21st century and, more importantly, into the black. It's planning to simplify its business structure down to two divisions and reduce costs while pushing its successful range of printers. We've got the announcement after the break but hopefully we'll see the century-old company live to see another day.
The Kodak Moment it never wanted: company reportedly prepping for Chapter 11 filing
Tough to smile in times like these, folks. Barely three years after yet another staple in the photography business filed for Chapter 11, Kodak is reportedly getting its paperwork in order to do the same. The Wall Street Journal has it that bankruptcy protection is looking all the more likely in the coming weeks, as its efforts to hawk a "trove" of digital patents proved to be in vain. As it stands, the employer of around 19,000 is currently working with lenders to secure around $1 billion in debtor-in possession financing to keep it alive during the actual bankruptcy process. Should this all pan out, its portfolio of 1,100 patents would then be re-listed via a court-supervised bankruptcy auction. Oh, and to make matters worse, it warned earlier in the week that it could be delisted from the New York Stock Exchange after Kodak shares closed at under $1 for thirty straight trading days.
It's official: Nortel patent sale approved by US and Canadian courts (updated)
Nortel was just looking for some quick cash when the company put its 6,000 telecommunications patents up for auction. Then Google decided that IP would make a mighty fine troll deterrent, and started a crazy bidding war to get it. A coalition of the willing -- including Apple, EMC, Ericsson, Microsoft, RIM, and Sony -- opposed Big G and paid $4.5 billion for the prize portfolio pending approval by the powers that be. Well, both Canadian and US bankruptcy judges just gave the purchase two thumbs up, and the deal is officially done. Now the question is whether the auction's victors will use these patents as a shield against those with trollish intentions or as a sword to strike at their enemies? Update: To clarify, the deal was only approved by the bankruptcy courts, and the US DOJ is examining the sale for its possible anti-competitive effects.
EV maker Think Global files for bankruptcy after poor US sales
Not so long ago, we were ready to believe that this plastic EV might stand a fighting chance thanks to its local charm and initial $28,000 price tag. But then the price soared, sales failed to pick up, and now it appears the Norwegian maker of the Think City couldn't cling on any longer. Think Global has filed for bankruptcy and will be liquidated in an attempt to pay off its creditors, including US battery producer and investor Ener1, which is making a $33 million charge on the company's assets. It's sad to see any such enterprise fail, but Think Global might one day be seen as a victim of the success of the EV industry, which is beginning to see better competition and lower prices.
Fallout Online's future in doubt as Interplay crumbles
Fallout Online and several other Interplay-developed titles may be in serious jeopardy, according to a US Securities and Exchange Commission report filed by Interplay last week. Develop discovered the filing, which spells out dire financial concerns for the immediate future of the company. Multiple times, the report states: "If we do not receive sufficient financing or income we may (i) liquidate assets, (ii) sell the company (iii) seek protection from our creditors including the filing of voluntary bankruptcy or being the subject of involuntary bankruptcy, and/or (iv) continue operations, but incur material harm to our business, operations or financial conditions. These conditions, combined with our historical operating losses and our deficits in stockholders' equity and working capital, raise substantial doubt about our ability to continue as a going concern." Similarly worrying, the company's current cash balance is approximately $3,000 (yes, that's just three thousand dollars, seriously), and it's operating with nearly $2.9 million in debt. The filing also illuminates the company's shift from paying its developers upfront for projects to working on a "net revenue sharing model," where devs get a cut of the final sales rather than paid when their work is complete. While that model sounds hugely profitable for third-party devs, and has been sporadically successful in the movie business, it seems to signal something less than wonderful in Interplay's case. Additionally, the company's credit agreement has ended, which Interplay says "has resulted in a substantial reduction in the cash available to finance our operations." Rather than assure investors that everything will work out, the company again warns of potential negative outcomes, saying instead, "There can be no assurance that we will be able to enter into a new credit agreement or that if we do enter into a new credit agreement, it will be on terms favorable to us." Currently, Interplay has five known projects, ranging from a lawsuit-entangled Fallout MMO to a sparsely detailed Earthworm Jim sequel. Several WiiWare and DSiWare projects are also in the works, though the fate of all five games could be grim given the wording of the company's SEC filing.
Fallout Online's future in jeopardy as Interplay's finances suffer
There's a bad moon a risin' for all you MMO-playing Vault-dwellers out there. Fallout Online, the in-development MMO from Interplay, has been through some rough waters already, but it looks like the situation may be about to go from bad to -- pardon the pun -- apocalyptic. A recent SEC filing by Interplay indicates that the company is going through some rough financial times, which doesn't bode well for the Fallout Online's future. According to the article at GamePolitics, Interplay is skating on thin ice with "a cash balance below $3000 and a working capital deficit of $3 million." The company also states that if the financial situation doesn't change sooner, rather than later, it could be forced to declare bankruptcy or even sell the studio entirely. We here at Massively wish Interplay the best in hopes that someday we'll all be able to step out of the Vaults and into Fallout's uniquely retro post-apocalyptic wasteland.
JoWooD recovery plan breaks down, closure appears imminent
Austrian game publisher JoWooD Entertainment has reached "game over," according to Austrian news site Boerse-Express. Negotiations with potential investors to recapitalize the debt-ridden publisher have fallen apart, signaling that the end is near. In order to pay back creditors, Game Informer notes, JoWooD could now attempt to sell off its game properties (recalling Midway's last gasp). A companion report on Boerse-Express adds that shares of the company have been suspended from trading and that the JoWooD Distribution Services subsidiary has also filed for bankruptcy. It's as yet unknown what will happen to DreamCatcher, JoWooD's Toronto-based subsidiary in charge of North American publishing operations. In early January, JoWooD filed for bankruptcy and announced plans to pursue capital reorganization. "The management board assumes that negotiations with creditors and possible investors can be positively conducted and finalized within 90 days," the company said at the time, "and thus continuation of the company can be assured." JoWooD was founded in 1995. The company is best known for publishing the Gothic series, in addition to the Painkiller and Spellforce games. JoWooD also published Torchlight in European territories. According to Boerse-Express, the company employs about 85 staff. In the first nine months of the current fiscal year, JoWooD reported a net loss of €25 million (about $36 million). [Pictured: Painkiller: Redemption (2011)]
Dish Network takes over 500 Blockbuster locations for some reason
Earlier this month, when Dish Network announced that it would be taking over Blockbuster's remaining assets, we openly wondered about what the deal would mean for the thousands of (mostly) empty rental stores still scattered across the country. Shuttering all of them seemed like a very real possibility, but it now looks like Dish has plans for at least a few of Blockbuster's old stomping grounds. On Saturday, the company agreed to assume the leases for about 500 of the 1,700 Blockbuster locations still in operation, according to papers filed with a New York Bankruptcy Court. Of course, it's still unclear what Dish plans to actually do with these stores -- or, for that matter, with the Blockbuster brand, as a whole. But it certainly looks like its long-term vision may incorporate at least some of Blockbuster's brick-and-mortar roots.
Dish Network wins Blockbuster auction for $228 million in cash
The question of what's next for Blockbuster has been partially answered, now that Dish Network has announced its $320 million bid was enough to win a bankruptcy court auction for the rental giant's remaining assets. After "certain adjustments" are made and the deal closes, it's expected to cost just $228 million in cash but what exactly Dish plans to do with the 1,700 stores and innumerable copies of Little Fockers is unclear. Executive VP Tom Cullen stated in the press release (after the break) Dish looks forward to reestablishing "Blockbuster's brand as a leader in video entertainment," but in a world where Netflix, Redbox and iTunes exist that could be easier said than done.
Google bids $900 million for Nortel patent portfolio, will use it as shield against patent trolls (update)
Google and Nortel have agreed on the princely sum of $900 million to start off a "stalking horse" auction -- wherein outside parties are still free to outdo Google's bid -- for the acquisition of Nortel's rather vast patent portfolio. The sale comes as part of the latter company's bankruptcy selloff and involves some 6,000 patents and patent applications, which encompass both wired and wireless communications, semiconductors, data networking, voice, and the internet -- going so far as to even touch on web search and social networking. The thing is, Google's not really enamored with these tidbits of intellectual property to the tune of nearly a billion dollars. No sir, a rather bitter blog post from the company this morning makes it quite clear that Google's acting in order to bolster its own intellectual property library and to "create a disincentive for others to sue." Both Android and Chrome get obliquely mentioned in Google's announcement as benefiting from the move, which should be completed by June of this year pending other bids and regulatory approvals. Update: Microsoft has noted that it has "a worldwide, perpetual, royalty-free license to all of Nortel's patents that covers all Microsoft products and services, resulting from the patent cross-license signed with Nortel in 2006." That license will also transfer with the sale of the patent rights. All that means is that Microsoft cannot be sued for infringing on that bundle of rights as it is already licensed to use them. That means Microsoft is extremely unlikely to participate in this auction -- other than, of course, as a means to prevent others from obtaining the same rights.
Judge rules against Hawkins personal bankruptcy, EA founder still owes millions in taxes
A reading from Forbes on the prophet Trip Hawkins: And lo, the San Francisco federal judge saw through the abusive tax shelters Hawkins used to hide millions in profits from his Electronic Arts days and declared them bad. Smiting a declaration of personal bankruptcy, the judge believed that Hawkins should give unto the government the estimated $20 million or more in federal and California state taxes he is in arrears to. The 16-page opinion by US District Judge Jeffrey S. White pointed out that Hawkins "continued to spend money extravagantly with knowledge or his tax liabilities" and that he "planned to defeat his taxes via bankruptcy and continue living the lifestyle to which he had grown accustomed." General rule: Pay your taxes. It's what did in Capone. Better rule: When the government is on your butt about tax evasion, it's best not to play it like Hawkins and purchase a $70,000 car ... especially when it's your fourth automobile in a two-driver household. [Image credit: AlanCleaver_2000]
Blockbuster going up for sale, hoping to live up to its name
Don't think of this as the end of the road for Blockbuster, think of it as a new beginning. After filing for Bankruptcy back in September, big blue and yellow has been working to get its affairs in order -- and trying desperately to fend off both Netflix and Redbox with offerings like Blockbuster on Demand and Blockbuster Express. Things apparently haven't gone entirely to plan. The next stop is For Salesville, with bids for the company starting at $290 million. CEO Jim Keys put a positive spin on the news, saying that this will "allow for the consolidation of ownership of the company to those with a clear and focused vision for Blockbuster's future." It might also finally let that guy take a vacation -- a potentially very long one.
