Wednesday, January 04, 2012
Kodak may File for Bankruptcy
With the advent of the New Year, many people are pursuing resolutions and starting fresh. Unfortunately, for many companies, 2012 ushers in a new rash of bankruptcy filings. Just this week, the Wall Street Journal reported that Eastman Kodak Co. may be preparing for Chapter 11 bankruptcy in the weeks ahead.
Kodak is in discussion with potential lenders, exploring the possibility of attaining about $1 billion in financing. If Kodak does file for bankruptcy, the company would attempt to sell its 1,100 patents in a court-supervised auction. Apparently the worth of these patents are around $3 billion.
Over the years, Kodak has had a difficult time adapting to an increasingly digital world. Digital photos and online photo-sharing posed certain challenges for Kodak, a more than 100-year-old company traditionally based on photography and its non-digital equipment. Over the years, significant numbers of staff have been let go worldwide.
Kodak has yet to comment on the possibility of a bankruptcy filing. In the meantime, the company's shares have closed under $1 for the last 30 days, according to the Wall Street Journal.
To learn more about bankruptcy, please contact an experienced bankruptcy attorney in your area.