Chapter 11: Kodak prepares to file for bankruptcy

NEW YORK: Eastman Kodak is preparing a Chapter 11 bankruptcy protection filing in case it is unable to sell its digital patents to raise capital, The Wall Street Journal reported on Wednesday. The once-iconic photographic film pioneer is in talks with potential lenders to secure about $1 billion in debtor-in possession financing to sustain Kodak through bankruptcy proceedings, the Journal reported, citing unidentified sources. The Chapter 11 filing could come as soon as this month or early February, the newspaper said. Kodak shares fell about 28% to 47 cents on the New York Stock Exchange following the online report. Kodak warned in November that it might not survive 2012 if it was unable to secure $500 million in new debt or sell its patents. The company’s cash had been shrinking as sales of its consumer products have failed to keep up with its heavy cost base, which includes employees and offices around the globe.

Published in The Express Tribune, January 8^th, 2012.