Eastman Kodak prepares for bankruptcy: report
05 Jan 2012
Iconic photographic film pioneer Eastman Kodak is preparing to file for bankruptcy protection, in case it is unable to sell its digital patents to raise capital, The Wall Street Journal today reported.
The Chapter 11 filing could come as soon as this month or early February, the newspaper said, citing unnamed sources.
The 131-year-old company is still trying to sell off some of its patents portfolio, which could fetch between $2 billion and $3 billion, even as Kodak has initiated plans to file for bankruptcy in case it does not succeed in selling its patents.
It has also started talking to banks for a $1-billion ''debtor-in possession financing'' to keep itself afloat during bankruptcy proceedings, the news paper said.
In July last year, the Rochester, New York-based company had hired investment bank Lazard Ltd to look for buyers for its 1,100 digital patents, and warned in November that it might not survive 2012 if it was unable to raise $500 million in new debt.
Since 1999, Kodak has lost more than 95 per cent of its stock value as it was not able to cope with Japanese competition due to the onset of the digital revolution and was late to launch its mass-market line of digital cameras.
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