Kodak Offers Reorganization Information

In the days since Kodak and its U.S. subsidiaries voluntarily filed for Chapter 11 reorganization, the company has been stressing that it is not going out of business, rather it is in the process of transforming.

"We are taking this step at this point in our transformation in order to build the strongest foundation possible for the Kodak of the future," noted Antonio M. Perez, Chairman and CEO, in a letter to customers, "and emerge from the reorganization as a vibrant enterprise that will be an even better partner for our customers and other stakeholders."

The company has created a Web site (www.kodaktransforms.com) dedicated to keeping customers informed during the reorganization process. In addition to a video from Perez discussing Kodak's objectives, the site includes several Frequently Asked Questions to keep its customers informed:

Is Kodak continuing to operate during the Chapter 11 proceedings?

Yes. The Chapter 11 process allows us to continue normal business operations while we reorganize to bolster liquidity in U.S. and abroad, monetize non-strategic intellectual property, fairly resolve our legacy costs, and enable the Company to focus on our most valuable business lines.

We are going into the Chapter 11 process with commitment of $950 million in financing, sufficient liquidity to assure that vendors, suppliers and other business partners will be paid in full for goods and services they provide us going forward.

Can I continue to purchase products and services from Kodak in the ordinary course?

Going forward, our customers can count on us for business as usual. Customers will continue to receive the same quality of product and service they expect. Kodak will continue to do what it has always done—bring products and services to market that help our customers do more, do it better, and do it faster.

Will pending customer deliveries be completed?

The Chapter 11 process allows Kodak to continue normal business operations. Accordingly, customers should expect to continue as usual to receive deliveries of purchased items.

Are exchanges or refunds for products still being provided?

Since we are continuing to operate our normal business, customers should expect that Kodak will continue as usual to honor pending orders and purchases, including exchanges and refunds.

Are warranties still valid? What about rebates and other customer service programs?

Since we are continuing to operate our normal business, customers should continue to expect that we will fully maintaining warranties, rebates, and other customer service programs as usual—both for our commercial customers and for consumers who purchase Kodak products from retailers.

If we buy products/receive services from one of the entities that filed for Chapter 11, will we receive our agreed upon rebate for the fourth quarter?

The Court granted our motion to honor pre-petition rebates in the ordinary course. Customers with pre-petition rebates from entities that have filed for Chapter 11 reorganization are treated as creditors for purposes of honoring those rebates, which is why court approval was needed.

If we buy goods/receive services from non-U.S. Kodak entities, will we receive our rebates?

Yes. Kodak’s non-U.S. subsidiaries were not included in the Chapter 11 filing and continue to operate as usual.

Will Kodak continue to honor customer contracts?

The Court granted our motion to honor pre-petition contracts in the ordinary course.

Does the Chapter 11 filing affect the selection of products that Kodak offers?

Offerings to customers will continue as usual. Kodak will continue to do what we have always done—bring products and services to market that help our customers do more, do it better, and do it faster. That will not change.