Kodak prepares to seek bankruptcy protection
Company is trying to sell patents in last-ditch effort to raise money
Eastman Kodak, the company that developed the digital camera in 1975, is preparing to seek bankruptcy protection, according to the Wall Street Journal.
The 131-year-old company, which once ranked among America's corporate titans, is making last-ditch efforts to sell some of its patents and may be able to avoid bankruptcy if it succeeds.
However, Kodak has started making preparations for the Chapter 11 filing, in case its attempts to sell the patents fail. The bankruptcy filing may come as soon as this month, or the beginning of February.
The company is talking to banks about approximately $1 billion in financing to keep it afloat during bankruptcy proceedings, sources told the Wall Street Journal.
Kodak will continue to pay its bills and operate normally while under bankruptcy protection, but the company's focus will be the sale of some 1,100 patents through a court-supervised auction.
Kodak's financial woes date back to the 1980s, when foreign competitors took over its share in the film market, the company later had to contend with the rise of smartphones and digital cameras.
Kodak shares closed on Wednesday at 47 cents, down 28% on the news of the Chapter 11 filing.