Eastman Kodak Co. may file for Chapter 11 bankruptcy-protection in the coming weeks if efforts to sell several of its digital patents fail, according to the Wall Street Journal.
Although a Kodak spokesperson told the newspaper that the company "does not comment on market rumor or speculation," it is in discussions with potential lenders for around $1 billion in so-called debtor-in-possession financing that would keep it afloat during bankruptcy proceedings, according to an unnamed source.
If Kodak seeks Chapter 11 protection from creditors, it would then try to sell its portfolio of 1,100 patents through a court-supervised bankruptcy auction. Kodak would continue to pay its bills and operate normally while under bankruptcy protection, sources told the Wall Street Journal.
Kodak's shares have closed under $1 for 30 consecutive trading days and were 18 percent lower by Wednesday at 54 cents each after The Wall Street Journal reported the company was preparing a possible Chapter 11 filing.
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