Chapter 11: Kodak

Kodak files Chapter 11 bankruptcy

Here comes the press release:

January 19, 2012 12:22 AM Eastern Time
Eastman Kodak Company and Its U.S. Subsidiaries Commence Voluntary Chapter 11 Business Reorganization

Flow of Goods and Services to Customers to Continue Globally in Ordinary Course

Non-U.S. Subsidiaries Are Not Included in U.S. Filing and Are Not Subject to Court Supervision

Company Secures $950 million in Debtor-in-Possession Financing in U.S.

Kodak's Reorganization to Facilitate Emergence as Profitable and Sustainable Enterprise

ROCHESTER, N.Y.--(BUSINESS WIRE)--Eastman Kodak Company ("Kodak" or the "Company") announced today that it and its U.S. subsidiaries filed voluntary petitions for chapter 11 business reorganization in the U.S. Bankruptcy Court for the Southern District of New York.

"Our goal is to maximize value for stakeholders, including our employees, retirees, creditors, and pension trustees. We are also committed to working with our valued customers."

The business reorganization is intended to bolster liquidity in the U.S. and abroad, monetize non-strategic intellectual property, fairly resolve legacy liabilities, and enable the Company to focus on its most valuable business lines. The Company has made pioneering investments in digital and materials deposition technologies in recent years, generating approximately 75% of its revenue from digital businesses in 2011.

Kodak has obtained a fully-committed, $950 million debtor-in-possession credit facility with an 18-month maturity from Citigroup to enhance liquidity and working capital. The credit facility is subject to Court approval and other conditions precedent. The Company believes that it has sufficient liquidity to operate its business during chapter 11, and to continue the flow of goods and services to its customers in the ordinary course.

Kodak expects to pay employee wages and benefits and continue customer programs. Subsidiaries outside of the U.S. are not subject to proceedings and will honor all obligations to suppliers, whenever incurred. Kodak and its U.S. subsidiaries will honor all post-petition obligations to suppliers in the ordinary course.

"Kodak is taking a significant step toward enabling our enterprise to complete its transformation," said Antonio M. Perez, Chairman and Chief Executive Officer. "At the same time as we have created our digital business, we have also already effectively exited certain traditional operations, closing 13 manufacturing plants and 130 processing labs, and reducing our workforce by 47,000 since 2003. Now we must complete the transformation by further addressing our cost structure and effectively monetizing non-core IP assets. We look forward to working with our stakeholders to emerge a lean, world-class, digital imaging and materials science company."

"After considering the advantages of chapter 11 at this time, the Board of Directors 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," Mr. Perez continued. "Our goal is to maximize value for stakeholders, including our employees, retirees, creditors, and pension trustees. We are also committed to working with our valued customers.

"Chapter 11 gives us the best opportunities to maximize the value in two critical parts of our technology portfolio: our digital capture patents, which are essential for a wide range of mobile and other consumer electronic devices that capture digital images and have generated over $3 billion of licensing revenues since 2003; and our breakthrough printing and deposition technologies, which give Kodak a competitive advantage in our growing digital businesses."

Mr. Perez concluded, "The Board of Directors, the senior management team and I would like to underscore our appreciation for the hard work and loyalty of our employees. Kodak exemplifies a culture of collaboration and innovation. Our employees embody that culture and are essential to our future success."

Kodak has taken this step after preliminary discussions with key constituencies and intends to work toward a consensual reorganization in the best interests of its stakeholders. Kodak expects to complete its U.S.-based restructuring during 2013.

The Company and its Board of Directors are being advised by Lazard, FTI Consulting Inc. and Sullivan & Cromwell LLP. In addition, Dominic DiNapoli, Vice Chairman of FTI Consulting, will serve as Chief Restructuring Officer to support the management team as to restructuring matters during the chapter 11 case.

More information about Kodak's Chapter 11 filing is available on the Internet at www.kodaktransforms.com. Information for suppliers and vendors is available at (800) 544-7009 or (585) 724-6100.

Kodak will be filing monthly operating reports with the Bankruptcy Court and also plans to post these monthly operating reports on the Investor Relations section of Kodak.com. The Company will continue to file quarterly and annual reports with the Securities and Exchange Commission, which will also be available in the Investor Relations section of Kodak.com.

SHALE GAS

Shale gas refers to natural gas that is trapped within shale formations. Shales are fine-grained sedimentary rocks that can be rich sources of petroleum and natural gas. Over the past decade, the combination of horizontal drilling and hydraulic fracturing has allowed access to large volumes of shale gas that were previously uneconomical to produce. The production of natural gas from shale formations has rejuvenated the natural gas industry in the United States.


According to the EIA Annual Energy Outlook 2011, the United States possesses 2,543 trillion cubic feet (Tcf) of potential natural gas resources. Natural gas from shale resources, considered uneconomical just a few years ago, accounts for 862 Tcf of this resource estimate, more than double the estimate published last year. At the 2010 rate of U.S. consumption (about 24.1 Tcf per year), 2,543 Tcf of natural gas is enough to supply over 100 years of use. Shale gas resource and production estimates increased significantly between the 2010 and 2011 Outlook reports and are likely to increase further in the future.

What Are the Environmental Issues Associated with Shale Gas?

Natural gas is cleaner-burning than coal or oil. The combustion of natural gas emits significantly lower levels of carbon dioxide (CO₂), nitrogen oxides, and sulfur dioxide than does the combustion of coal or oil. When used in efficient combined-cycle power plants, natural gas combustion can emit less than half as much CO₂ as coal combustion, per unit of electricity output.

However, there are some potential environmental concerns that are also associated with the production of shale gas. The fracturing of wells requires large amounts of water. In some areas of the country, significant use of water for shale gas production may affect the availability of water for other uses, and can affect aquatic habitats.

Second, if mismanaged, hydraulic fracturing fluid — which may contain potentially hazardous chemicals — can be released by spills, leaks, or various other exposure pathways. Any such releases can contaminate surrounding areas.

Finally, fracturing also produces large amounts of wastewater, which may contain dissolved chemicals and other contaminants that require treatment before disposal or reuse. Because of the quantities of water used and the complexities inherent in treating some of the wastewater components, treatment and disposal is an important and challenging issue.

via [http://www.eia.gov/energy_in_brief/about_shale_gas.cfm]

SHALE GAS

Wanna know why the price of natural gas keep on declining?
You might wanna learn more about SHALE GAS!

In January 2011, the Secretary of Energy Advisory Board (SEAB) created a Natural Gas Subcommittee to evaluate what role natural gas might play in the clean energy economy of the future. 

On March 30, 2011, President Obama announced a plan for U.S. energy security in which he instructed the Secretary of Energy to work with other agencies, the natural gas industry, states, and environmental experts to improve the safety of shale gas development. As a result, Energy Secretary Steven Chu charged the Natural Gas Subcommittee with providing the SEAB with recommendations as to actions that can be taken to improve the safety and environmental performance of shale gas extraction processes, and other steps to ensure protection of public health and safety.

via [http://www.shalegas.energy.gov/]

Dr. Martin Luther King

Who Ain't Got A Dream? 

Forget those pedestrian campaign t-shirts, buttons and bumper stickers.  The Obama Campaign has officially gone upscale and chic in an effort to help re-elect the president in 2012.

Their new “Runway to Win” line of  designer campaign swag is now for sale in the campaign’s online store, featuring colorful  $85 tote bags by big name designers Vera Wang and  Diane Von Furstenberg and a $75 version by fashion favorite Tory Burch.

Looking for a t-shirt?  Stars Marc Jacobs, Beyonce, Sean Combs and Jason Wu — who designed Michelle Obama’s inaugural gown — have each contributed a design.  They range in price from $45 to $55 apiece.

The priciest of the 13 items listed online is a $95 for a Thakoon-designed silk scarf.

Standard campaign t-shirts, it should be noted, cost $30, while a simple canvass tote costs $50 in the same online store.

The money raised from the sale of campaign-themed apparel and accessory benefits the Obama Victory Fund, a joint account of both Obama and the Democratic National Committee, according to the website.

The full list of participating designers:  Tory Burch, Marc Jacobs, Beyonce & Tina Knowles, Derek Lam, Jack McCollough & Lazaro Hernandez, Tracy Reese, Narcisco Rodriguez, Rachel Roy, Thakoon Panichgul, Grace Tsao-Wu & Laura Kofoid, Diane Von Furstenberg, Marcus Wainwright & David Neville, Jason Wu, Altuzarra, Richard Blanch, Eddie Borgo, Georgina Chapman & Keren Craig, Sean Combs, Prabal Gurung, Monique Pean, Russell Simmons and Vera Wang.

via [abcnews]

BELIEVE IN AMERICA: MY PLAN FOR JOBS AND ECONOMIC GROWTH

Things are happening in America today that break my heart. Joblessness is one of them. Back in the beginning of 2009 we were told by the incoming Obama administration that a massive federal spending package would keep the unemployment rate from rising above 8 percent. Eight percent is itself a shocking number, far above what was then the post-war average of 5.6 percent. If only President Obama had been right, for he proceeded to borrow nearly a trillion dollars for his “stimulus.” And yet the unemployment rate blew right past 8 percent until it hit the high-water mark of 10.1 percent.

At the moment that I am writing—three years into the President’s four-year term—joblessness remains above 9 percent. Close to 14 million Americans are unemployed. Another 8.4 million are considered “underemployed,” holding one or more part-time jobs because they can’t find full-time work. An additional 2.8 million are regarded by Washington as “marginally attached to the labor force”—in plain words, they are no longer even counted among the unemployed because they simply have given up seeking work.

These numbers are not mere abstractions. They represent suffering and hardship on a grand scale. Over the past year, I’ve crisscrossed the country and met so many bright and capable people whose lives have been upended by the continuing economic crisis. I’ve encountered stoicism and hard work and American ingenuity in the face of adversity. But I’ve also encountered anguish and tragedy. With rising gasoline and grocery prices compounding the strains of a barren job market, a great many Americans are struggling just to pay their bills. Almost 46 million Americans—that’s 34 percent more than two years ago—are living on food stamps, the highest number since that program was created. Millions of homes have been lost to foreclosure. I’ve seen far too much hopelessness and too many dreams shattered. I’ve met Americans who lost everything that they had saved a lifetime to build. I’ve also seen fierce anger at Washington, D.C., and the politics and politicians who led us into our travails and who now seem unable to find an exit.

The anger is justified. Things don’t have to be this way. I believe America can do better. That’s why I am running for president.

In 1947, the year I was born, unemployment was 3.9 percent. In 1968, when I turned 21, it was 3.6 percent. Let’s not forget all the periods in our recent history when our economy was humming along at high speed, creating the opportunities that made our country the most successful and powerful in the history of the world. We’ve done things right in the past. We can do things right once again. We have recovered from recessions before. Indeed, the American economy has repeatedly proved to be extraordinarily resilient. After we hit bad patches, as in the early years of Ronald Reagan’s presidency, the economy came roaring back.

But we’ve just gone through 30 consecutive months with the unemployment rate above 8 percent. That’s the longest such spell since the Great Depression, and the end is not in sight. A 21-year-old today fresh out of college is facing very different conditions from those in place when I graduated. Jobs for recent graduates are simply not there. With things so difficult this time around, it is worth inquiring why.

No small part of the answer has to do with the wrenches the Obama administration has thrown into the economy. Badly misguided policies have acted as a severe drag on growth. We can count here the binge of borrowing and spending that set off worldwide alarms about the creditworthiness of the United States and led to Standard & Poor’s unprecedented downgrade of our nation’s sovereign credit rating. We can also count the vast expansion of costly and cumbersome regulation of sectors of the economy, ranging from energy to finance to health care. When the price of doing business in America rises, it does not come as a surprise that entrepreneurs and enterprises cut back, let employees go, and delay hiring.

In addition to the administration’s errors are its missed opportunities—paths not taken that should have been taken. We have just been through a period of extraordinary economic turbulence. Restoring clarity and predictability are essential for igniting hiring and investment. Yet in so many areas, from tax rates to energy policy to labor regulation to trade, the Obama administration has only added to the lack of clarity and the uncertainty. The most dramatic illustration came midsummer, when the absence of presidential leadership brought the country to the precipice of default. Uncertainty is the enemy of growth, investment, and hiring. Unfortunately, uncertainty has been the hallmark of the Obama administration.

As we move forward, a fundamental question before us is the proper role of the federal government in our economic life. The President appears to believe that government can do a better job managing the economy than can a free people and free enterprise. I disagree. Washington has become an impediment to economic growth. Extracting the overreaching hand of government will not be easy. Entrenched interests and their allies in government will fight every step of the way. But it is not a battle from which we can shrink. We must restore the principles that have enabled the American economic engine to outperform the world. The federal government has become bloated to the point of dysfunctionality. It needs to be pared back and redirected. Instead of threatening and stifling enterprise, it must encourage investment in growth and people. 

Obama is not working. Obamanomics is a failure. With little private-sector experience, President Obama turned to the only thing he really knew: government. His distrust and antipathy for the private sector led to policies that burdened and constrained business at the very time we needed it to advance, to invest, and to hire.

 My experience could not be more different from his. I spent 25 years in business. I led an international consulting firm through difficult times to growth and success, led a financial services business from start-up to global prominence, and led the turnaround of a Winter Olympics to world acclaim. I know what it means to meet a payroll. I know why businesses hire people, and why they become forced to lay them off. I know what it means to compete in this country and abroad. My entire life experience convinces me that with a leader who fundamentally understands the economy, with a government that encourages investment and hiring, and with the faith and hard work of the American people, we will right the economy, create good jobs, and restore the promise of the future. 

I believe in America. We have always been a land of discovery and pioneers. We flew the first plane across the ocean, we planted the first flag on the moon, we connected the people of the world with the telegraph, the telephone, the television, and the Internet. It is not an accident of history that America is the home of Facebook, eBay, Apple, Microsoft, and Google. These companies reflect our singular capacity for innovation. Nor is it an accident that the productivity of the American worker is unparalleled. The dynamism of our society is renowned around the world. We should build upon our strengths, not burden them with bureaucracy, excessive regulation, and intrusive government.

There’s much that needs to be done and done quickly to put America back on the right path. I have formulated a comprehensive and integrated plan that focuses on seven areas where reform is urgently needed: taxes, regulation, trade, energy, labor, human capital, and fiscal policy. Change in any one of these seven areas would be important and helpful by itself. Taken together, they hold the potential to revitalize our economy and to reignite the job-creating engine of the United States.

 So much is at stake: nothing less than the future of our great country.

-Mitt Romney

via [mittromney.com]

Obama Join Instagram

We’re excited to welcome President Barack Obama to Instagram! We look forward to seeing how President Obama uses Instagram to give folks a visual sense of what happens in the everyday life of the President of the United States. In addition to sharing photos through the @barackobama Instagram account, the Obama 2012 staff is asking supporters to share their photos from the campaign trail with the tag #obama2012.

We’ve seen political coverage on Instagram increase as the 2012 US Presidential Election nears. News organizations such as NBC News, ABC World News and the Washington Post have been sharing behind-the-scenes photos at debates and town hall meetings across the country, offering a unique look into the 2012 elections. As election day nears, we look forward to seeing how campaigns, reporters and voters use Instagram to tell the story of the 2012 Presidential Election through photos.

via Instagram

The Wall Street Journal, citing “people familiar with the matter,” reports Kodak is in talks with lenders about $1 billion in funding that would keep the company afloat during bankruptcy proceedings. The bankruptcy could happen later this month or in February, according to the report.

LIFE

OCCUPY WALL STREET

  

" We Are The 99% that will no longer tolerate the greed and corruption of the 1% " 

About

OccupyWallSt.org is the unofficial de facto online resource for the growing occupation movement happening on Wall Street and around the world. We're an affinity group committed to doing technical support work for resistance movements. We're not a subcommittee of the NYCGA nor affiliated with Adbusters, anonymous or any other organization.

Occupy Wall Street is a people-powered movement that began on September 17, 2011 in Liberty Square in Manhattan’s Financial District, and has spread to over 100 cities in the United States and actions in over 1,500 cities globally. #ows is fighting back against the corrosive power of major banks and multinational corporations over the democratic process, and the role of Wall Street in creating an economic collapse that has caused the greatest recession in generations. The movement is inspired by popular uprisings in Egypt and Tunisia, and aims to fight back against the richest 1% of people that are writing the rules of an unfair global economy that is foreclosing on our future.

Link to the site: http://occupywallst.org/

Thanks 

Paul