Posts tagged: Chapter 11

Antonio Perez and the Problem with Predictions

Jim Hamilton
 Jan 9, 2014

Watching Antonio Perez sound the opening bell at the New York Stock Exchange yesterday reminded me of something I wrote about a year ago as part of InfoTrends’ On Demand Road Map of predictions for 2013:

“A key question moving forward is whether or not current Chairman and Chief Executive Officer Antonio Perez continues in his role or retires after many years of service and a grueling bankruptcy process. Kodak is now out from under the unsustainable financial burden of legacy promises made to employees and retirees when Kodak had more than 100,000 employees. It has a strong foundation of products, personnel, and future technologies. InfoTrends anticipates that once the bankruptcy proceedings and intellectual property (IP) sales are fully completed, Mr. Perez will move on and that Kodak will promote someone from within to take the leadership role.”

Well, I was wrong.

A year has passed and Read more »

How the U.K. Pension Plan Ended Up Owning a Big Part of Kodak

Ron Gilboa
 Apr 30, 2013

Yesterday Kodak and the U.K. Based Kodak Pension Plan (KPP) made news. Resolving their financial issues was only one element but surprisingly KPP ended up owning key Kodak businesses. In its release Kodak stated the following: “Eastman Kodak Company announced a settlement agreement with the U.K. Kodak Pension Plan (KPP).” KPP is Kodak’s largest creditor with respect to its Chapter 11 Plan of Reorganization. Under the agreement, which will be filed with the U.S. Bankruptcy Court, Kodak’s Personalized Imaging and Document Imaging businesses will be spun off under new ownership to KPP.”

“The settlement agreement provides, among other things, for the spin-off of Kodak’s Personalized Imaging and Document Imaging businesses to KPP for cash and non-cash consideration of $650 million. Certain proceeds will be used to support the emergence of Kodak from Chapter 11 and the growth of its Commercial Imaging business. The agreement also settles approximately $2.8 billion of claims by KPP against Kodak and certain of its affiliates.”

“The agreement will be implemented as part of Kodak’s Chapter 11 plan in the United States. At the consummation of the spin-off, Kodak and its worldwide affiliates will be released from their obligations to KPP. The UK Pensions Regulator (“the Regulator”) has been kept fully informed of this process and the Regulator has granted clearance in respect of the acquisition. The Regulator has decided that it will approve the release of Kodak Limited, the KPP’s sponsoring employer, from its liabilities to the KPP and the UK Pension Protection Fund has confirmed that it has no objection. Closing of the transaction is subject to the approval of the U.S. Bankruptcy Court, approval by the Regulator and the satisfaction or waiver of other conditions precedent.” Read more »

Shutterfly Poised to Increase Market Lead with Kodak Gallery Acquisition

Alan Bullock
 Apr 27, 2012

This week, Shutterflys $23.8 million offer for “certain assets” of competing online photo service Kodak Gallery was selected as the winning (and only) bid in the court-supervised auction that is part of Kodak’s Chapter 11 bankruptcy proceedings The agreement, announced on March 1, is for the sale of “certain assets” including customer accounts and images in the U.S. and Canada, and is expected to receive final court approval early next week.

The transition process, expected to begin soon thereafter, is a familiar one for Shutterfly. In recent years, the service has scooped up customers from several competitors that have assumed room temperature, including Sony Image Station and American Greetings’ PhotoWorks. Unless they choose to opt out, Kodak Gallery users’ photos will be automatically transferred to a new or existing Shutterfly account and they will probably be welcomed to Shutterfly with some free prints and maybe a discounted photo book or two. According to a notice at Kodak Gallery, users who choose to not have their photos moved to Shutterfly will be able to download them for free or to purchase copies on DVD for a limited time. (Incidentally, this may be the last chance for Kodak Gallery users to retrieve their high-resolution image files — Shutterfly does not allow users to download their photos.) Read more »

manroland enters insolvency

Ralf Schlozer
 Nov 25, 2011

While times have been tough for offset printing equipment suppliers in recent years it still came as a surprise that manroland has filed for insolvency protection (the German equivalent of Chapter 11) on the 25th of November. The announcement came only one day after reports that negotiations with a potential investor failed.

In a statement issued on its website manroland confirmed that it had been forced to initiate insolvency proceedings following a “dramatic downturn in incoming orders” since July. The company has filed a request at the local magistrate for self-administration in order to finalise its on-going restructuring efforts as a “debtor in possession,” a court-appointed lawyer will act as general representative during the time of restructuring, while the company’s situations and options are evaluated.

While several offset press vendors have exited the market in the last decade (InfoTrends not long ago reported on the state of the offset press manufacturing industry), the insolvency of manroland gives the decline in offset press manufacturing a new dimension. To put these proceedings into perspective: the insolvency of manroland is the biggest insolvency of any kind in Germany for the last two years, despite many companies having been hit by the financial crisis. It is affecting a company, which has been in business for more than 160 years and survived two world wars and the transition from letterpress to offset. Read more »

On Demand Printing, Bankruptcy, and iPads – Irony and Innovation

Jeff Hayes
 Feb 16, 2011

Yesterday, Xerox announced that it is ready to ship its Espresso Book Machine which can print books on demand at retail locations like your corner book store. Today, as reported in the Wall Street Journal, Borders Group — the second largest U.S. chain of retail book stores — filed for Chapter 11 bankruptcy. Are these two items related? Probably not, but I see some irony in the timing of the announcements.

Source: The Wall Street Journal

The Espresso Book Machine is supposed to be a liberator of content, a new revenue stream for traditional brick & mortar bookstores, a solution for the busy consumer that wants a hard copy book. Just install one of these machines and watch the customers come in and print their own books on demand. Xerox proclaims, “Self-publishers can print their latest manuscripts at the corner bookstore, classical books are now available for purchase on demand at libraries, cruise-goers can leave their books at home and print reading materials on the ship.”

The reality is that the number of bookstores has been dropping steadily as buyers shift to on-line purchasing through Amazon.com and other sites.  Why? e-Commerce is a more efficient business model with a better value proposition for most consumers. Read more »

The first sizeable offset press manufacturer files for bankruptcy

Ralf Schlozer
 Jan 17, 2011

The downturn in offset press sales has claimed its most prominent victim so far. While several finishing and press component suppliers have folded in the aftermath of the 2008 financial crisis, Shinohara is the most prominent press manufacturer to file for bankruptcy protection so far.

With debts of over €70 million and revenues down to €20 million in the 2010 business year, Shinohara Co. Ltd. filed for bankruptcy protection last week on January 11th. This Japanese civil law filing is similar to a U.S. Chapter 11th. Shinohara’s sales dropped drastically in their past fiscal year from €45 million (5 billion Yen) in 2009 to €20 million (2.2 billion Yen) in 2010.

Read more »

Ritz Camera Files for Chapter 11 Bankruptcy Protection

Ed Lee
 Feb 24, 2009

ritz-logo1InfoTrends predicted in its 2009 Digital Photography Road Map analysis that retailers would be hurt as the digital camera market takes a tumble. Alas, it appears that Ritz Camera will be one of the first victims in 2009.

On Monday, February 23, Ritz Camera announced that it had filed for Chapter 11 bankruptcy protection. This announcement will send ripples across the imaging industry. With almost 800 stores, Ritz Camera is the largest photo specialty retailer in the U.S. The company blames the recession and consumers’ shift to digital photography for part of its losses. Ritz is seeking court permission to obtain $85 million of financing to keep operating while it restructures, and it hopes it may eventually emerge from Chapter 11. We wish them the best of luck.

Read more »

2016 InfoTrends, Inc.

WordPress Appliance - Powered by TurnKey Linux