Bankruptcy looms for Kodak

KODAK shares plummeted to an all-time low as reports claimed that the camera company could be close to filing for bankruptcy.

If Kodak fails to sell the 1,100 digital patents it has been trying to offload since last summer, the company’s next move would be to seek Chapter 11 protection from creditors and sell these patents via a court-supervised bankruptcy auction.

The New York based company, which has suffered in recent years due to waning demand for photographic film, has struggled in its attempt to transform into a printer company.

Kodak warned in November, after September bankruptcy rumours, that it would run out of cash unless it sold its patents or borrowed more money.

Yesterday’s reports of an imminent bankruptcy for Kodak came the day after the New York Stock Exchange threatened to delist the company if the stock price, which has closed under $1 for 30 consecutive trading days, does not recover.

Shares, which have fallen 92 per cent over the last year, dropped 27 per cent yesterday to close at $0.47.