Kodak reported to be considering filing for bankruptcy

Kodak workers outside the company's headquarters in Rochester, New York. Photograph: Reuters

Eastman Kodak, whose company name has been associated with film photography for more than 100 years, is said to be considering filing for bankruptcy after suffering heavy losses in recent years.

Google was reported to be one of a number of suitors who were examining the photographic pioneer's assets ahead of a sale, although some potential buyers are reluctant to proceed with bids because a purchase may amount to a so-called fraudulent transfer if the company becomes insolvent, according to the Bloomberg news agency.

A bankruptcy filing may help clear the way for a patent sale, Bloomberg was told by a number of individuals with knowledge of the process.

Such a sale could fetch about $3bn (�1.9bn), according to estimates from MDB Capital Group. In July, it hired investment bankers Lazard to sell about 1,100 digital-imaging patents.

After 131 years in business, Kodak finds itself on shaky ground largely because of the popular embrace of digital cameras, forcing the company to mine its patent portfolio for additional cash.

Gerard Meuchner, a spokesman for Kodak, told the Wall Street Journal: "As we sit here today, the company has no intention of filing, and there is no change in our strategy to monetise our intellectual property. We're not concerned about fraudulent conveyance in regards to the sale of our IP portfolio."

He declined to comment on whether the company had discussed a potential filing with law firms, saying the company was "focused on the fourth quarter and on delivering on our strategy to become a profitable, sustainable digital company."

Kodak's shares plunged 91 cents to close at 78 cents per share.

The Wall Street Journal reported that the company had hired Jones Day, a law firm that dispenses advice on bankruptcies and other restructuring alternatives.

Kodak's chief executive, Antonio Perez, sought to defuse the bankruptcy speculation at a meeting earlier this week with the company's 19,000 employees, according to the newspaper.

Friday's news follows a Kodak disclosure earlier this week that it was borrowing $160m from its revolving credit line. That convinced some investors that Kodak was running out of cash.

Source: http://www.guardian.co.uk/business/2011/oct/01/eastman-kodak-reports-filing-bankruptcy

abc world news tonight anchor abc world news tonight episodes abc world news tonight with peter jennings abc world news tonite abc world news video