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Kodak denies rumours of bankruptcy

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.

Antonio Perez, Kodak CEO

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.”

Categories : Products and Technology

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