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Kodak Files for Chapter 11 Bankruptcy

Kodak Files for Chapter 11 Bankruptcy

In this late 1920's file photo, Eastman Kodak Co. founder George Eastman, left, and Thomas Edison pose with their inventions. Edison invented motion picture equipment and Kodak invented roll-film and the camera box, which helped to create the motion picture industry. Kodak filed for Chapter 11 bankruptcy protection on Thursday, Jan. 19, 2012, raising the specter that the 132-year-old trailblazer could become the most storied casualty of a digital age that has whipped up a maelstrom of economic, social and technological change.

The Eastman Kodak Co. announced today that it has filed for chapter 11 bankruptcy.

The photography and imaging equipment company and its U.S. subsidiaries "filed voluntary petitions for the reorganization in the U.S. Bankruptcy Court for the Southern District of New York," according to a news release posted on Kodak's website early this morning.

According to the company, the move is intended "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." In addition, the company said it has received $950 million financing from Citigroup to maintain operations as it goes through bankruptcy.

Earlier this month, the Wall Street Journal reported that Kodak was preparing for bankruptcy in the "coming weeks" in case efforts to sell its patents fall through.

"Kodak is taking a significant step toward enabling our enterprise to complete its transformation," said Antonio M. Perez, Chairman and Chief Executive Officer in the release.

Perez said the company "must complete the transformation by further addressing our cost structure and effectively monetizing non-core IP assets. We look forward to working with our stakeholders to emerge a lean, world-class, digital imaging and materials science company."

Kodak has long struggled with reinventing itself as a technology company amid advancements in digital cameras and photo sharing.

The company has closed 13 manufacturing plants and 130 processing labs, and reducing its workforce by 47,000 since 2003, the release said.

Earlier this month, Kodak disclosed that the New York Stock Exchange warned the company's shares could be delisted unless it gets its finances in order in the next six months.

Since 1892, the company has been called Eastman Kodak Company under George Eastman.

In 1888, the word KODAK was registered as a trademark for a camera that could be used by a larger market, the company said.

http://gma.yahoo.com/blogs/abc-blogs/kodak-files-chapter-11-bankruptcy-061650360--abc-news.html
http://www.boston.com/news/nation/articles/2012/01/19/kodak_files_for_ch_11_bankruptcy_protection/

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Taxes and Deductions that Expires on 2012

Higher Education Expenses: After 2011, the above-the-line deduction for qualified higher education expenses won't be available, so you'd better claim it now. Taxpayers with adjusted gross incomes of up to $65,000 for singles and $130,000 for couples can claim the maximum deduction: $4,000. The deduction applies to fees and tuition paid by students enrolled in an institution of higher learning during 2011 or during the first three months of 2012.

Mortgage Insurance Premiums: Before year's end, homeowners with joint adjusted gross incomes of less than $109,000 can deduct the cost of their mortgage insurance. Afterwards, they can't.

Adoption Credits: Under a program that expires Jan. 1, parents of adopted children can claim a credit against their federal income tax of up to $13,360 for each adopted child (for qualified expenses). If the expenses have been paid for by an employer, they can exclude up to $13,360 form their gross income.

Sales Tax: Planning to buy a big-ticket item? Buy it now, if you're somebody who doesn't have to pay state and local income taxes (a retired public employee, for instance). Up to now, such people have had the option of deducting sales taxes to reduce their federal income tax. After the new year, however, they won't.

Classroom Materials: Are you a K-12 teacher, instructor, principal or aide? Have you worked in a school for at least 900 hours during the school year? If so, you can claim an above-the-line deduction of up to $250 for any expenses you have paid out of pocket for books, computer equipment, supplies or supplementary materials used in the classroom. Next year, however, you won't be able to: The deduction vanishes.

Energy Efficiency Upgrades: Taxpayers who improve their home's energy efficiency can claim a credit of 10 percent for the cost, up to a maximum of $500. You can, for example, add insulation to your attic, install insulated windows or buy an energy-efficient air conditioner or furnace. You should retain the receipts and any certification by the manufacturer that your property meets the requirements for the credit. Be advised: This is a one-time deal: If you claim credit for an upgrade this year, you won't be able to claim it next.

IRA Contributions: People 701/2 years old (or older) can get a special break for charitable giving, but only if they act before the break expires Dec. 31. Senior donors who have a traditional IRA (or other tax-deferred retirement plan) can give their distribution -- up to $100,000 -- to a qualified charity, excluding it from income. By so doing, they will have satisfied their distribution requirement without owing taxes. The move is especially advantageous, tax experts say, for seniors who don't itemize.

AMT Patch: This break, which expires annually, was created by Congress to save taxpayers from having to pay the Alternative Minimum Tax (AMT), a flat 28 percent rate imposed on high-earners. The AMT dates back to the Nixon era, when the Treasury Department, to its horror, discovered that many of the wealthy were paying nothing.

Under the AMT, anyone earning more than a set amount was forbidden from claiming certain deductions and was potentially subject to the 28 percent rate. Problem is, there was no provision made for adjusting that set amount for inflation. As a result, decades of inflation have put more and more people of relatively modest means into the 28 percent bracket.

Rather than change the law and peg the AMT's threshold to inflation, Congress has opted every year to raise the threshold. This re-adjusted amount is the so-called patch, the latest of which is now due to expire at the end of December. It's $72,450 for a married couple filing jointly, and $47,450 for a single filer.