Kodak's plan to surface from bankruptcy protection was granted by a federal judge.
Judge Allan Gropper, in his ruling, said that granting Kodak's plan will result in the removal of healthcare and retirement benefits for the company's workers while the company's investors will recover a measly amount on the dollar. "So at a time of admitted tragedy, let us take a moment to dwell on the future and hope that Kodak will be successful," said Judge Gropper.
This ruling will allow the premier photography company to materialize from court oversight as a new company that will focus on commercial and packaging printing. The company hopes to rise from bankruptcy protection on the third of September, this year.
Kodak filed for bankruptcy reorganization in the year 2012 after fighting to stay on top despite growing competition, continuing development in digital photography and increasing debt. Since it has filed for bankruptcy, the company has sold may of its businesses and patents and it has also closed down its camera manufacturing unit, the unit that initiated their popularity during the company's younger years.
While a majority of the Kodak's creditor agreed to go on with the plan to emerge, some of the company's shareholders, retirees and other concerned parties opposed the same, arguing that they should get something in exchange for their shares. Judge Gropper however ruled at a previous hearing that these objecting shareholders were not entitled to their stocks. Gropper upheld the law which states that when a company surfaces from bankruptcy, common stock holders are not entitled to anything.
Kodak, originally known as Eastman Kodak Co was founded by George Eastman in the eighteenth century. It is recognized as the first company to popularize photography and was popular around the world for its cameras such as the Instamatic camera and the Brownie camera.
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