Sunday 11 December 2011

Kodak reshuffling to avoid bankruptcy

Kodak reshuffling to avoid bankruptcy: Kodak reshuffling to avoid bankruptcy

Struggling photography brand Kodak has hired law firm Sullivan & Cromwell's, in a bid to restructure its finances in order to avoid bankruptcy, according to reports.

Earlier in the year, Kodak employed Jones Day, sparking worldwide speculation that it was about to file for bankruptcy, as Jones Day is well known for working on such cases.

The reasons behind the switch in law firms remains unclear, however Kodak is remaining resolute regarding filing, seemingly keen to avoid it all costs.

Kodak has been facing increasing financial problems, with warnings last month that it could run out of cash if couldn't sell assets or raise new funds quickly. By the end of September, Kodak had $862m, down from $1.4billion a year previously.

Patents

As one of the early pioneers of digital photography, Kodak has a number of patents which it has been selling off in a bid to raise cash. Few details about the specifics of such sales have emerged so far.

Kodak is also attempting to sell its photo sharing and printing business, Kodak Gallery, with hopes for a large cash injection resulting in its sale. Recently, it sold its image sensor business, which helped develop the world's first digital camera sensor.

Last month, Kodak disclosed it was considering rescue financing, which is one of many options the company is considering.

Via Wall Street Journal


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