Eastman Kodak Co <EK.N> is in advanced talks with Citigroup Inc <C.N> to obtain financing that would be used if the money-losing photography company files for bankruptcy protection, Bloomberg News said on Thursday, citing three people familiar with the matter.<\/p>\n
Advisers to Kodak are also lining up a “stalking horse” that would become the lead bidder for a patent portfolio should it be auctioned via the Chapter 11 process, the newswire said, citing one of the people.<\/p>\n
Neither Kodak nor Citigroup immediately responded to requests for comment.<\/p>\n
Shares of Kodak fell 7.2 cents to 60 cents in after-hours trading following the report. They had closed regular trading down 14.3 cents, or 17.5 percent, at 67.2 cents.<\/p>\n
Kodak has been left behind by rivals that embraced digital camera technology faster.<\/p>\n
The Rochester, New York-based company is trying to raise cash by selling a large patent portfolio, a sale that could enable it to avoid bankruptcy.<\/p>\n
It also has patent litigation against such companies as Apple Inc <AAPL.O>, Taiwan’s HTC Corp <2498.TW> and BlackBerry maker Research in Motion Ltd <RIM.TO> <RIMM.O>, which if successful could boost the value of its patents.<\/p>\n
On Tuesday, Kodak restructured its business operations, but it was unclear whether this would be enough to restore the company’s health sufficiently fast.<\/p>\n
According to published reports, Kodak may file for Chapter 11 protection by early February, and seek about $1 billion of debtor-in-possession financing to keep it operating while in bankruptcy.<\/p>\n
The company is scheduled to report fourth-quarter results on January 26.<\/p>\n","protected":false},"excerpt":{"rendered":"
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