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Kodak files for bankruptcy

Eastman Kodak, the once mighty icon of the photography industry, filed for Chapter 11 bankruptcy protection Thursday.
NEW YORK (CNNMoney) -- Eastman Kodak, the once mighty icon of the photography industry, filed for Chapter 11 bankruptcy protection Thursday.

Kodak's stock plunged 30% in premarket trading.

The company said it has obtained $950 million in financing from Citibank to maintain operations. The company said the credit facility is still subject to court approval.

Kodak said it has enough liquidity to continue operating during the bankruptcy process.

Kodak acknowledged, in its Chapter 11 filing, that it had more than 100,000 creditors, with debts totaling $6.75 billion.

Kodak company also said that it had assets of $5.1 billion, with properties in Rochester, NY, Windsor, Colo. and Weatherford, Okla.

Kodak's top creditor is the Bank of New York Mellon, with claims of more than $650 million.

Other creditors include Sony, Nokia, WalMart, Target, Best Buy, Office Max, Disney Studios and CVS.

Kodak has long struggled to evolve from film and compete in the digital age, even though it was an early pioneer of digital photography.

For months, bankruptcy rumors have dogged the venerable company, which was founded by George Eastman in 1888.

In September, Kodak announced that it needed to tap $160 million from a pre-existing $400 million credit line. Just over a month later, the company warned that it could run out of cash if it failed to sell a number of its patents, raised additional capital or borrowed more money.

In its most recent attempt to stay afloat, the Rochester, N.Y.-based company looked to raise cash by exploring the sale of more than 1,100 patents, or 10% of the company's patent portfolio, which had the potential of generating $3 billion, according to analysts.

Last fall,Kodak tapped $160 million from a pre-existing $400 million credit line, prompting Moody's to downgrade the company's debt securities, pushing them further into junk territory.

And earlier this month, the company streamlined its corporate structure.
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