Kodak’s Bankruptcy

I for one am surprised that Kodak was able to hang on this long before filing for bankruptcy. All of there missteps will make a fabulous case study for Harvard MBA students! But the real pain is going to be felt by retiree’s who will see their benefits cut and current employees who have seen their 401-k’s gutted.

Kodak recently notified it’s retired employee’s that their health care benefits would end and they are elgible for Medicare. This will save Kodak about $20.5 million a year-is this the same medicare system that we the tax payers will be bailing out? Kodak has told it’s retiree’s that the cost to them will be “minimal” and maybe even cheaper than they are paying now….Really?

An organization of 3,000 Kodak retirees, known as EKRA, promised legal action. They said:

“EKRA believes that Kodak’s motion to terminate the retiree health plan conflicts with the bankruptcy statute protections limiting the alteration of certain benefit plans during bankruptcy,” EKRA President Bob Volpe said in a statement. “EKRA advisors will request that the judge require Kodak to negotiate with EKRA and representatives of the affected retirees to reach a more appropriate arrangement.”

My heart goes out to those employees who thought they were set for life-this is just another reminder that at the end of the day we all have to plan for the unexpected when it comes to financial matters.

 

 

 

 

 

 

2 Responses to “Kodak’s Bankruptcy”

  1. Kodak is a typical company who’s unwilling to innovate: dead.

  2. Steve says:

    Thanks Rick! To think there was a time when they were the lead Dog!!

Leave a Reply

Dansette