Kodak Prepares to File for Bankruptcy

Transcript by http://www.newsy.com

BY HARUMENDHAH HELMY and DANNY MATTESON
ANCHOR CHRISTINA HARTMAN

You're watching multisource tech news analysis from Newsy.

An American business icon in danger of demise. The Wall Street Journal is reporting Kodak may soon file for Chapter 11 bankruptcy protection. U.S. media aren't taking the news so well. Take a look.

"Really a heartbreaking moment, Janet, brings to mind that old Paul Simon song, 'Mama Don't Take My Kodachrome Away.'" (Video: Fox News)

"It's always sad, Chris, when an American icon like Kodak as you said, a company that we not only all know, but whose products we really enjoyed growing up, goes under..." (Video: MSNBC)

"Don't you remember the flash cubes? I remember getting my first Kodak disk, I was so excited..." (Video: Fox News)

The Wall Street Journal broke the story Wednesday — quoting anonymous sources saying Kodak is teetering on the edge.

"That Kodak is even contemplating a bankruptcy filing represents a final reversal of fortune for a company that once dominated its industry, ... plowing money into research that produced thousands of breakthroughs in imaging and other technologies. The company, for instance, invented the digital camera—in 1975—but never managed to capitalize on the new technology."

The Wall Street Journal says Kodak is still attempting to sell some of its patents. The company could avoid bankruptcy if it succeeds. Still, preparations to file Chapter 11 bankruptcy protection has reportedly begun, and it could happen as early as this month.

As of Thursday afternoon, Kodak has made no comment on the rumor. But, as WPEC reports -- the stock market could be talking for the company.

"Yesterday's Kodak stock fell to 45 cents a share, a new all-time low. They must get it back to a dollar a share within six months of now, otherwise the company will be de-listed from the stock exchange."




Kodak is headquartered in Rochester, New York. The local newspaper, the Rochester Democrat and Chronicle, admits there are plenty of red flags. For example, Kodak has had net losses since 2008. But the paper also has this to say:

"...Kodak issued a statement Sept. 30 stating it 'has no intention of filing for bankruptcy.' The company also doesn't face any major debt payments until 2013. ... [One investment expert] maintained that bankruptcy fears in recent months are heavily fanned by short sellers of Kodak stock who are betting against the company."

Finally, CNBC says -- no matter what happens, the name 'Kodak' probably won't go away anytime soon.

Analyst: "Remember that this brand is one of the most iconic brands in the world and it has very substantial asset value in its own right. So 'Kodak' is not going to disappear."
CNBC: "So do I understand... you could have a liquidation, and yet the Kodak name could live as a standalone product?"
Analyst: "Absolutely."
Analyst 2: "We see it all the time."

Eastman Kodak Co. is about 131 years old. It's often been called the Apple or Google of its time.

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News & Politics

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