Kodak has won approval to borrow $950 million to finance its restructuring process, after filing for bankruptcy last month. The confirmation of the funding should allow the company to continue operating while it considers how to move forward. Kodak received the full amount it had requested despite some legal manuevering from Apple, which wanted to ensure that any Kodak assets that could be involved in patent disputes wouldn't be used to secure the financing. CEO and Chairman Antonio M. Perez said:
"Today's agreement is another step towards ensuring that Kodak is positioned to execute on the goals the Company set out last month: Bolster our liquidity in the U.S. and abroad, monetize our non-strategic intellectual property, fairly resolve legacy liabilities, and enable Kodak to focus on its most valuable business lines."
The key point there is "monetize our non-strategic intellectual property." The decline of film photography and Kodak's failure to keep up with the transition to digital means that it doesn't have much in the way of compelling consumer products — the company has taken to offloading divisions and suing competitors from Apple to Samsung in recent attempts to raise revenue. None of this amounts to a long-term business plan, however, and Kodak will need to think hard about how it plans to survive beyond raising temporary liquidity.
It also emerged today that Kodak has been granted permission to end its sponsorship of the Los Angeles theater that hosts the Academy Awards. With this year's Oscars ceremony scheduled for February 26th, there's no word yet on whether the Kodak Theatre will still have its name come showtime.