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Oct 15, 2001 12:00 AM
Polaroid Corp. (Cambridge, MA) and its U.S. subsidiaries have filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code, following this year’s steep decline in revenues and the resulting impact on the company’s liquidity.
Polaroid has obtained a commitment for $50 million in debtor-in-possession financing from bank group J.P. Morgan Chase & Co. Upon court approval, $40 million of these funds will be available immediately on an interim basis to supplement the company’s existing cash flow and help Polaroid pay suppliers, vendors and business partners for goods and services provided on or after today’s filing.
Polaroid and its lenders have also agreed to accelerate and intensify exploration of a possible sale of all or parts of the company, which they believe would be in the best interest of all constituencies. Additionally, the company is thoroughly evaluating all aspects of its business operations, with the objective of achieving cost savings beyond those provided by restructuring activities. This will result in the disposition or elimination of non-core products and businesses, additional asset sales, facility closings and a further reduction in personnel.
Polaroid intends to continue to manufacture, market and distribute is core instant imaging products and to provide customer service and support for them.