* Kodak sells unit for undisclosed sum
* Shares rise 6 pct in after-hours trading
By Liana B. Baker
NEW YORK, Nov 7 Eastman Kodak said it
sold its Image Sensor Solutions business to Platinum Equity for
an undisclosed sum in a move that will provide it with much
needed capital as it grapples with dwindling cash reserves.
The deal comes a week after Kodak said it was exploring
raising $500 million in additional financing. It warned last
Thursday it may need to raise new debt or complete a
multibillion-dollar patent sale to survive the next 12 months.
Kodak has said it planned to generate $200 million from
nonstrategic asset sales this year.
Kodak's shares rose 6 percent in after-hours trading on
A spokesman for Platinum Equity, a firm that specializes in
buying distressed assets, declined to comment on the sale.
Kodak's Image Sensor Solutions division helped develop the
first digital camera prototype and operates across a broad
range of industrial and media industries.
Rafferty Capital Markets analyst Mark Kaufman said the unit
was profitable to Kodak.
As part of the deal, the company is selling a 263,000
square foot facility in Rochester, New York, that houses the
division's manufacturing and research facilities. A Kodak
spokesman said some 200 full-time employees and some
contractors were being offered jobs with Platinum.
Kodak said that, as of Sept. 30, the company held $862
million in cash, about 10 percent less than it had on June 30.
It expects to have $1.3 billion to $1.4 billion in cash at the
end of the year.
An analyst from the credit agency Moody's published a note
on Monday saying Kodak would run out of cash in the United
States by 2012 unless it receives a major infusion from a
multibillion patent sale or new financing.
The company has said it has no intention of filing for
Kodak's image sensor business had industrial, medical,
photography and security applications, according to the unit's
website. That division helped Kodak developed the first
prototype of the digital camera, as well as the image sensor
used in the Space Shuttle program, it said.
Kodak shares rose 6 percent in after hours trading after
closing at $1.19 on the New York Stock Exchange.