Bankruptcy exposed for Kodak

January 27, 2012 by  

One of the most familiar names in film and photography may be on the verge of seeking Chapter 11 bankruptcy protection.

Kodak is struggling to get new sources of funding according to a recent report by “reliable” yet unknown sources.

It’s rumoured that American banks such as JP Morgan Chase, Wells Fargo and Citigroup have been approached or are involved in talks regarding money to keep the company operational as it examines its debt financing.

The news did not come as a surprise to Peabody print companies involved in digital imaging and commercial inkjet printing.

Kodak alarmed investors last year by stating that if it didn’t raise funds from the sale of more than 1,100 patents the company holds in its digital imaging portfolio, the historic company may not survive. Kodak has already dipped into revolving credit to the tune of $160 million.

The failure of Kodak to liquidate those patents, believed to be approximately one tenth of its complete IP portfolio, is quite possibly why it is exploring bankruptcy. It is also reported that the company has retained Jones Day, legal specialists in corporate restructuring, although Kodak has not admitted to this and refused comment despite the speculation regarding their financial health.

Since 2005, Kodak has lost money, specifically from the consumer and commercial print operations utilizing inkjet printers, which Perez felt was the future of Kodak. The company’s main competitor is Hewlett Packard.

Shares on the NYSE have fallen below $1 in recent months and Kodak risks being delisted if it can’t bring the price back up.