Rumors of business bankruptcy send Kodak stock tumbling

On Behalf of | Oct 19, 2011 | Business & Commercial Bankruptcy |

Kodak stock took a major tumble last week, dropping more than 50 percent as rumors concerning the company’s solvency swirled. Kodak, which is still hoping to avoid a business bankruptcy, has hired an international law firm for restructuring advice. Their biggest hope of avoiding bankruptcy may well involve selling their extensive patent portfolio, which has tech giants like Google circling the struggling maker of imaging equipment.

This is the second big hit to the company’s stock price; the earlier one came after it failed to secure a big victory in a patent dispute with Apple Inc. and Research in Motion Ltd, makers of the popular iPhone and Blackberry handheld devices, respectively. Victory in that action could have netted the company more than a billion dollars.

The company denied through a spokesman that it had any intention to file for a business bankruptcy. Should that change, their lawyers will certainly have their work cut out for them given the large size of the company, which still has nearly $1. 5 billion in sales worldwide. However, with an operating loss of nearly $180 million dollars, the company may be running out of room to maneuver unless it can find a buyer for some of its intellectual property assets . It will take deft decision-making to steer the company through bankruptcy while still maintaining its identity.

Source: The Business Journals, “Eastman Kodak stock down big on bankruptcy talk,” Dayton Business Journal Staff, Oct. 1, 2011


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