Is Kodak Soon Bankrupt ?

Kodak is not a big 3D technology provider but its name is one of the largest names most associated with cinema. The 131-years old company has seen his stock plummet in the last month and is now reaching a 47 cents low. Kodak had now hired a law firm that advises companies on bankruptcy and restructuring options.

From 2000 to 2011, Kodak lost more than 95 percent of its value as it was pummeled by foreign competition and then shaken to its core by the digital revolution that killd the film industry. It launched the plan to sell off its key assets as its shares fell another 80% in 2011, having started the year around 3 USD.  The New York Stock Exchange (NYSE) warned Kodak this week that its shares will be delisted (dropped from the NYSE listings) if they stay below $1 for six more months. But will Kodow survive six months? Not sure...

Kodak reports its fourth-quarter results on January 26, 2012 and is hoping the printer, software and packaging businesses will more than double in size by 2013 and account by then for 25 percent of its revenue, or nearly $2 billion. For the rest, Kodak has been sustaining itself for years in part by mining its inventions and patents portfolio for revenue — and the expected sale of its digital patents represents a sharp tactical shift. That could be because Kodak picked up just $27 million in patent-licensing fees in the first half of 2011, compared with $1.9 billion in the previous three years. It expects to generate more than $340 million in the first 2012 quarter from at least two patent-licensing deals and the sale of non-strategic assets.

CBS video report

Source: Wall Street journal, CBS.