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… Continue reading
A deal struck outside a Rochester courtroom on Sept 27 likely saved the season for the Elmira Jackals hockey team. The season, scheduled to begin October 12, was in jeopardy due to an ongoing dispute over First Arena, where the Jackals play, and a Chapter 11bankruptcy proceeding filed by the arena’s former operator. The interim agreement reinstates Elmira Downtown Arena LLC (EDA) as the arena operator and preserves hockey in Elmira. In July, First Arena’s owner terminated its agreement with EDA, which is controlled by the same Michigan businessman who owns the Jackals. This led to a legal proceeding to determine whether the Jackals could play in the arena this season. EDA filed for Chapter 11 bankruptcy in August, automatically halting the other legal proceeding. Elm Arena LLC, which has taken over the arena’s mortgage and is under contract to become the new owner, then sought payments from EDA under the bankruptcy rules for protection against the arena’s depreciation. If no agreement was reached, the new owner was prepared to ask the bankruptcy judge to keep EDA and the Jackals out. Under the agreement, EDA will make $18,000 monthly payments to Elm Arena, maintain adequate insurance on the facility, and properly… Continue reading
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