History in the making…
The U.S. Trustee in the Chapter 11 bankruptcy case of Kodak filed an objection against the Kodak’s employee continuity plan. That plan would give $8.5 million in retention bonuses to 119 mid-level and upper-level executives and an additional $5 million to other employees as needed. In the objection, the Trustee said that there aren’t enough guarantees that bonus money won’t go to upper management.
Kodak and Samsung announced that the two companies have formed an alliance to sell consumer inkjet printers in Europe. Samsung will sell Samsung all-in-one inkjet printers using Kodak’s printer and proprietary ink technology. The printers have begun selling in Germany. The inks for those printers are made here in Rochester.
On Wednesday it was announced that there weren’t any other bids on Kodak Gallery besides the one original bid from Shutterfly. A Court hearing will be held on April 30th to make the sale final. Shutterfly will pay $23. million to acquire the 75 million users and any technology that they don’t already have.
Bloomberg reports that Imax, pioneer of large format movies, has begun testing a prototype laser projection system, based on patents licensed from Kodak that improves picture quality with brighter light.
Friday saw Kodak releasing their first quarter report and it wasn’t good. Kodak lost $366 million, or $1.35 per share, during the quarter, compared with a loss of $249 million, or 91 cents, during the first quarter of 2011. Revenue for the quarters was $965 million, down 27% from the first quarter of 2011. They spent $52 million on professional legal fees and $36 million on borrowing financing. During the quarter, they also cut 1,025 employees in the U. S. and Canada. The only increase in sales was in consumer inkjet printers. Kodak will need to start showing some success in their restructuring plans.