Report: Kodak preparing for bankruptcy filing

Jan 4, 2012

Kodak is preparing to file for Chapter 11 bankruptcy protection.

That's according to a new Wall Street Journal report citing "people familiar with the matter."

One such unnamed source says the bankruptcy filing could come as early as this month.

The WSJ report says the bankruptcy filing would be contingent on Kodak's failure to sell a multi-billion dollar portfolio of tech patents. As we reported in September after a similar bankruptcy scare, such a filing would protect potential buyers of the patent portfolio.

Should Kodak file for bankruptcy now, [Rafferty Capital Markets analyst Mark] Kaufman says the patent buyer wouldn’t have to worry about creditors coming after it - if Kodak were to go bankrupt after the deal was made.

Analysts say the successful sale of the roughly 1,100 digital patents could be Kodak's last best shot at realizing its digital turnaround.

The patent portfolio has been on the market since July.

Bad week for Kodak

The new WSJ report comes just a day after Kodak announced that the New York Stock Exchange might de-list its tanking stock.

Shares of Eastman Kodak have been trading below the $1.00 mark for more than 30 days.

Wednesday's bankruptcy rumors sent the company's stock price to a new all-time low. Kodak shares closed at 47 cents.

Repeated calls to Kodak for comment were not returned.