October 4, 2011
The OEM has stated that it has “no intention” of filing for bankruptcy despite recent stock falls and the appointment of a bankruptcy law firm.
Kodak has refuted rumours that it is planning to file for bankruptcy, fuelled after the OEM hired Jones Day, a law firm well-known for taking bankruptcy protection cases.
As a result of the appointment, the company’s shares fell 54 percent on Friday, though the OEM countered that it was “not unusual for a company in transformation to explore all options”.
Having not made a profit since 2007, the company is currently in the process of moving from photography to printer manufacturing. Its announcement last week that it would be borrowing over $160 million sent stocks plummeting before the latest fall.
The company continues to try and make money out of its digital imaging patents, which are reportedly worth $2 billion, with its market value rated at $210 million, far below its height of $31 billion in 1997.
However, stock prices did begin to rise again at the beginning of this week, indicating that the company is not by any means at a point of no return.
Mark Kaufman, analyst at Rafferty Capital Markets, told the BBC: “I don’t believe bankruptcy is inevitable. [The patents are] a pretty valuable portfolio, they should get a good price.
“They need to get this [sale] out of the way. They need to sell this portfolio, raise some type of cash.”
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