Bankruptcy Looms For Kodak
Eastman Kodak Co. is preparing for a Chapter 11 bankruptcy-protection filing in the coming weeks should efforts to sell a trove of digital patents fall through, people familiar with the matter said.
The struggling photography icon, which employs about 19,000 people, is in discussions with potential lenders for around $1 billion in so-called debtor-in possession financing that would keep it afloat during bankruptcy proceedings, the people said. A filing could occur as soon as this month or early February, one of the people said.
Kodak still holds out hopes that various patents it holds could give them the value they need to avoid such a proceeding.
Kodak is still making last-ditch efforts to sell the patents, which would keep the company from filing for bankruptcy protection, one of the people said. But the 131-year-old former blue chip company has started making preparations for a Chapter 11 bankruptcy filing if those efforts don't come to fruition, the person said.
Kodak warned in a securities filing in November it will run out of cash to fund operations unless it sells its patents or is able to borrow more money.