Under a Chapter 11 bankruptcy plan, Eastman Kodak is required to make some big changes in their corporate structure in order to minimize costs. Kodak announced that one way it plans to cut these expenses is by cutting over 1,000 jobs by the end of 2012. The company has already laid off 2,700 employees worldwide since the beginning of the year, but this was not enough to meet the demands of the deficits imposed by the company’s lack of assets.
The company also plans to cut production of some lines of products that are not selling well in competition with imported items, such as digital cameras, digital picture frames and pocket video cameras. The company has requested the help of a well-known advisory group to determine important areas of focus as it concentrates on restructuring.
As some New York residents know, for a large company, restructuring under a Chapter 11 bankruptcy case can be very time-consuming and difficult. However, small businesses can also struggle with some of the same basic problems inherent in a large-company bankruptcy: allocation of assets, number of employees to be retained, and other financial questions. No matter what the size of a business, it is important for the directors or owners to have sound legal advice about the possibility of protecting assets through the filing of a Chapter 11 bankruptcy plan.
With the help of a bankruptcy attorney, both large and small businesses can work toward restructuring and saving the company through the protections offered by a properly-filed and executed plan.
Source: USA Today, “Kodak job cuts continue in bid to leave bankruptcy,” Sept. 10, 2012.by