Report: Kodak About To File For Bankruptcy

Eastman Kodak Co., the innovator of film and camera technologies for the last 131 years, is said to be filing for a Chapter 11 bankruptcy and do a court-supervised auction of its many patents about digital imaging. According to Wall Street Journal, Kodak is still making last-ditch efforts selling off some of its patents that they hope would keep the company afloat. However, the company has started preparing bankruptcy procedures just in case, which includes asking for $1 billion in financing from banks. The funding is needed to pay off some of its obligations.

The bankruptcy filing is seen as a final chapter to Kodak’s downward spiral. While the industrial and consumer demand for film began decreasing in the 1980s, coupled with foreign competition as well as the rise of digital photography and cameras in smartphones, Kodak sought money-making alternatives from bathroom cleaners to medical testing devices, but they did not generate income as they would like to hope. They niched on developing consumer and commercial printers for the past five years under Chief Executive Antonio Perez. It is now a big question what fate lies on Kodak’s printer category, which affects some 19,000 employees.

Many tech observers felt dismayed over the fate of this once giant corporation, saying it has passed up on many oppotunities. The company, for instance, invented the digital camera in 1975, but never managed to capitalize on it. Now, this patent could become a hot item among today’s leading digital camera makers such as Samsung and Sony.

Although a Kodak spokesperson said the company “does not comment on market rumor or speculation,” word about the impending bankruptcy was felt on Wall Street as Kodak closed last Wednesday at 47 cents, down 28%.

Source: Wall Street Journal

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