Kodak Restructures, Attempts to Avoid Bankruptcy
Eastman Kodak Co. (NYSE:EK) adjusted its business structure to cut costs, progress its transformation into a digital business and produce shareholder value. The Wall Street Journal reported last week that the company is getting ready to seek bankruptcy protection if a final effort to get money by selling some of the company’s patent portfolio is unsuccessful.
With the new structure, Kodak will cut its segments from three to two, commercial and consumer. Both will report to a new chief operating office led by Philip Faraci and Laura Quatela. Faraci will still be Kodak’s president and chief operating officer focusing on the commercial side. Quatela will focus on the consumer segment.
“This new structure simplifies the organization, focuses it more precisely on our consumer and commercial customers, and puts the right people in place to capitalize fully on the tremendous technological capabilities of Kodak,” said Chief Executive Antonio M. Perez.
Here’s how shares are reacting to the news:
Eastman Kodak Co. (NYSE:EK): EK shares recently traded at $0.48, up $0.08, or 20%. They have traded in a 52-week range of $0.36 to $5.70. Volume today was 11,790,082 shares versus a 3-month average volume of 9,269,030 shares. The company’s trailing earnings are $-4.62 per share.