by InvestorPlace Staff | February 3, 2012 12:12 pm
Eastman Kodak (PINK:EKDKQ) filed for the least surprising bankruptcy in history a few weeks back. So it’s no surprise that the barely breathing company is looking to weasel its way out of a$4 million-a-year contract to have its name on the Hollywood theater that hosts the Oscars.
MSNBC reports that court documents show Kodak has asked bankruptcy overseers to toss out Kodak’s naming rights and signage associated with it. About 10 years ago, Kodak agreed to pay $74 million to put its name on the 3,400-plus seat theater. But you have to wonder how and why officials at the once-dominant film company allowed a multimillion endorsement deal to persist for so long. Signs of trouble were evident for years, long before Kodak’s mad dash for cash months ago.
Kodak’s bankruptcy has affected Hollywood in more ways than just this endorsement deal. The largest unsecured creditors of the defunct company are major movie studios that are owed millions of dollars in rebates for using Kodak products. There’s a good chance they will not get repaid now.
It’s a sad state of affairs for a company that once was synonymous with movies and photographs. America’s Kodak moment may be over forever.
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