Kodak file for Bankruptcy


Few days ago, Eastman Kodak's share price fell by half. This is because of the company synonymous with photography, it is known to hire a law firm who are experts in the field of bankruptcy. Kodak was rumored about to file for bankruptcy.

Kodak has been selling cameras since 1888 is about to file for bankruptcy is denied. They said it was looking for ways to monetize their patent portfolios.

Kodak, which in some areas in Asia became a synonym for the word 'photo camera', is being fought in the era of digital cameras. Since 2007, they always fail to achieve a profit. They also plan to sell their patents are estimated to be worth $ 2 billion USD and has hired investment bank Lazard since last July.

Their latest act of hiring the law firm Jones Day to make their stock price plummeted 68 percent to a rate 54 cents, and towards the close of the New York Stock Exchange on Friday closed at 78 cents.

Mark Kaufman, an analyst at Rafferty Capital Markets, said Kodak had to get a patent agreement. "I do not believe bankruptcy is inevitable. It's a valuable portfolio, they should get a good price," he said. "They have to sell this portfolio to get cash."

Robert Miller, professor of Law from the University of Villanova, declared bankruptcy filing could increase the value of the sale of Kodak's patents. In fact, if the Kodak held a massive auction outside of bankruptcy, litigation headaches if Kodak still continues to haunt the stage broke. Therefore, Miller suggested the sale of assets under bankruptcy mechanism that guided the court, would resolve the problem. (Source: Reuters)