Kodak eyes bankruptcy cash from Citigroup: report

Thu Jan 12, 2012 9:18pm EST

Rolls of Kodak TMax film are seen on a camera store shelf in New York January 5, 2012.  REUTERS/Brendan McDermid

Rolls of Kodak TMax film are seen on a camera store shelf in New York January 5, 2012.

Credit: Reuters/Brendan McDermid

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(Reuters) - Eastman Kodak Co EK.N is in advanced talks with Citigroup Inc (C.N) to obtain financing that would be used if the money-losing photography company files for bankruptcy protection, Bloomberg News said on Thursday, citing three people familiar with the matter.

Advisers to Kodak are also lining up a "stalking horse" that would become the lead bidder for a patent portfolio should it be auctioned via the Chapter 11 process, the newswire said, citing one of the people.

Neither Kodak nor Citigroup immediately responded to requests for comment.

Shares of Kodak fell 7.2 cents to 60 cents in after-hours trading following the report. They had closed regular trading down 14.3 cents, or 17.5 percent, at 67.2 cents.

Kodak has been left behind by rivals that embraced digital camera technology faster.

The Rochester, New York-based company is trying to raise cash by selling a large patent portfolio, a sale that could enable it to avoid bankruptcy.

It also has patent litigation against such companies as Apple Inc (AAPL.O), Taiwan's HTC Corp (2498.TW) and BlackBerry maker Research in Motion Ltd RIM.TO RIMM.O, which if successful could boost the value of its patents.

On Tuesday, Kodak restructured its business operations, but it was unclear whether this would be enough to restore the company's health sufficiently fast.

According to published reports, Kodak may file for Chapter 11 protection by early February, and seek about $1 billion of debtor-in-possession financing to keep it operating while in bankruptcy.

The company is scheduled to report fourth-quarter results on January 26.

(Reporting by Jonathan Stempel in New York; Editing by Richard Chang)

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Comments (1)
Trivial wrote:
Alright, lets get our facts straight investors. The company is basically setting up a plan ‘just incase’ they file for bankruptcy. This is what every good company/business would do. Chapter 11 basically allows the company to restructure and become a competitive business again.

This is a given wheter or not this news comes out or not. Some people may think they are just preparing to file for bankruptcy when its just a ‘plan b’ situation.

They still have some really good patents which will make them financially stable as they restructure the company. The lawsuits with apple, rimm, and htc will take time.

My best advise for stock holders is to hold on to your stock. If your spending over 20% of your portfolio on KE, i would reccommend selling some shares to be on the safe side.

For those who are keeping the stock, kudos to you! This stock is very cheap and can easily have a gain over 500% with patience.

Tommorrow will be a mixed day for investors, be prepared to see this stock fall another 10cents… Hello!! Thats even a perfect time to BUY BUY BUY!!

You won’t be dissapointed!

I am considering buying this stock 2morro. Lets help this company historic company grow!


Thank me later

Excuse my grammar, im reading this news on my Iphone!

Jan 12, 2012 9:52pm EST  --  Report as abuse
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