OUTPUT

Eastman Kodak has announced it and its US subsidiaries have filed voluntary petitions for chapter 11 business reorganisation and has secured $950m (£615m) in debtor-in-possession financing from Citigroup.

Kodak has stressed that the proceedings, which provide bankruptcy protection, do not affect subsidiaries outside the USA, and that all supplier obligations will be carried out. The company adds that employee wages will continue to be paid.

"After considering the advantages of chapter 11 at this time, the board of directors and the entire senior management team unanimously believe that this is a necessary step and the right thing to do for the future of Kodak," states Antonio M Perez, Kodak chairman and chief executive.

"Chapter 11 gives us the best opportunities to maximise the value in two critical parts of our technology portfolio: our digital capture patents, which are essential for a wide range of mobile and other consumer electronic devices that capture digital images and have generated over $3bn [£1.0bn] of licensing revenues since 2003; and our breakthrough printing and deposition technologies, which give Kodak a competitive advantage in our growing digital businesses."

Kodak reassured Output today that British and European customers would not be affected, stating that there will be no change in service or supply of parts and that drupa would be 'huge' for the company; a full statement is expected.