Make-or-break for Kodak, as bankruptcy looms
posted Wednesday, January 4, 2012 at 5:26 PM EST
Eastman Kodak Co. is in the midst of preparations to file for Chapter 11 bankruptcy, should its attempt to sell off a portfolio of over a thousand patents not come to fruition, reports the Wall Street Journal this afternoon.
Kodak, which yesterday disclosed that it was at risk of delisting from the New York Stock Exchange, currently employs some 19,000 people, and is said to be trying to arrange some US$1 billion in debtor-in-possession financing to keep the company running while bankruptcy proceedings progress. Unnamed sources said to be familiar with the matter told the WSJ that a bankruptcy filing could happen as soon as this month.
Kodak's stock has fallen precipitously since highs in the late 1990s, as the company has struggled to reinvent itself in a digital world. Not surprisingly, they fell still further on today's news. As reported elsewhere by the WSJ, shares were down by almost a third at today's close of trading.