Kodak said it will continue to operate its businesses and hopes to emerge from Chapter 11 next year after using bankruptcy court to cut costs and sell off some of its patent portfolio.
In their press release Kodak said, "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."
Bankruptcy may make it easier for Kodak to sell the patents and get a higher price for them. An auction would be overseen by a judge and require bidders to make open offers that others could try to top.
Kodak's recent strategy has been to concentrate on consumer and commercial inkjet printing, but to do it directly opposite the strategy of HP. Kodak's idea has been that consumers would pay more for printers if they could get cheaper ink refills, but it's awfully tough to grab enough market share in the market dominated by HP, with reasonably sized chunks also owned by Epson and Canon, as the company found.
Creditors will have to decide whether the printer operations are worth supporting, and if the bulk of the company's value is actually in its patents.
Personally, I don't see much value at Kodak other than its patents, and I see its creditors throwing in the towel, forcing a Nortel like liquidation sale. I think it's time Kodak, which hasn't been able get past its film history to remake themselves in the "digital age," to become part of photographic history.