Report: Kodak close to bankruptcy filing
Kodak is preparing to seek bankruptcy protection in the US in a move that marks a stunning decline for a once mighty photographic company.
According to a report in The Wall Street Journal, citing sources close to the issue, the company is still making an effort to stave off the Chapter 11 bankruptcy protection, but is preparing for the worst.
Kodak, which is credited with inventing the digital camera in 1975 and has a long history of innovation, may avoid the ignominy of bankruptcy proceedings if it can sell off a swathe of patents.
According to the Journal, the 131-year-old company is “talking to banks about some $1 billion in financing to keep it afloat during bankruptcy proceedings”, but could be forced to file for Chapter 11 protection either this month or next.
The company would then seek to sell 1,100 patents through a court-supervised auction, the sources said.
Chapter 11 is a US tool to enable companies to continue trading under supervision, even when they are unable to service debts and pay suppliers.