Polaroid and its US subsidiaries announced the company has filed voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code in order to facilitate the Company's ongoing financial restructuring process.
The company said that the financial restructuring process and the
filing would not impact day-to-day operations for employees,
customers, retailers and suppliers.
Polaroid added that ot had entered bankruptcy with ample cash
reserves sufficient to finance the Company?s reorganization under
Mary L. Jeffries, Polaroid chief executive officer, said, "Our
operations are strong and during this process Polaroid will ship
products to our retail partners, work with our suppliers and
contract manufacturers to fulfill retailer demand, honor customer
warranties and employees are expected to receive their regular
paychecks without interruption. We expect to continue our operations
as normal during the reorganization and are planning for new product
launches in 2009."
The financial structuring process and the bankruptcy filing are the
result of events at Petters Group Worldwide, the company that has
owned Polaroid since 2005. The founder of Petters Group and certain
associates are currently under investigation for alleged acts of
fraud that have compromised the financial condition of Polaroid and
other entities owned by Petters Group. Polaroid is not subject of
the ongoing investigation involving Petters Group.