Kodak Denies Bankruptcy Report, but Shares Plummet
Eastman Kodak Co., the company synonymous with cameras, on Friday denied reports over its planned bankruptcy that stemmed after the company hired a law firm well-known for such cases, triggering stockholders to pullout shares.
Consumer camera maker Eastman Kodak Co. on Friday denied reports over its planned bankruptcy that stemmed after the company hired a law firm well-known for such cases, triggering stockholders to pullout shares.
On Friday, Kodak shares plummeted more than half its value – as much as 68 percent to 54 cents before recovering slightly to close 53.8 percent at 78 cents per share on the New York Stock Exchange.
But the photography pioneer denied that it would file bankruptcy, stressing that the company remained committed to meet its obligations to its shareholders and is still seeking ways to “monetize” its patent portfolio.
Once synonymous with photography, the company has been battling and exploring a sale of its digital imaging patent, which is estimated to cost $2 billion. In July 2011, it has hired investment banker Lazard to explore the options.
Kodak, which released its first consumer camera in 1888, is now struggling to cope with digital cameras and failed to turn a profit over the last five years.
However, many shareholders remained doubtful over the company’s financial standing, saying that there is a greater chance of risks to stay with the company.
Kodak had already sent investors into a scramble on Monday when it tapped a credit line, but refuse to divulge its cash position. The company’s shares also plummeted to a 38-year low that day.
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