One of the oldest Fortune 500 companies has filed for Chapter 11 protection under the U.S. Bankruptcy Code, USA Today reports.
The filing by Eastman Kodak Co. was expected since news surfaced that the company was in trouble, as we reported previously.
The story reports: “The iconic Rochester [N.Y.] company, whose history dates to the late 19th century and the technical and marketing genius of founder George Eastman, has been besieged for the past three months by rumors that it would make a bankruptcy filing. Those rumors had intensified in the past two weeks.”
In announcing the decision, Kodak CEO Antonio M. Perez issued a statement saying: "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."
Perez indicated that it will be business as usual for employees of the company and assured them that the firm will continue to pay wages and benefits while it goes through Chapter 11.