Kodak Denies Reports of Bankruptcy Plans
Eastman Kodak stock opened higher Monday just days after the company denied reports that it is considering bankruptcy as a possible option amid its financial worries as reported by Bloomberg News and the Wall Street Journal.
Bloomberg's report cites sources as saying a bankruptcy filing may help clear the way for the sale of Kodak's patents which have been on the block for months as part of the company's plan to raise cash.
The Wall Street Journal reported news on Kodak Friday, also saying Kodak has hired law firm Jones Day for restructuring advice as it faces growing concerns from investors.
Kodak issued the following statement:
"Kodak is committed to meeting all of its obligations and has no intention of filing for bankruptcy. The company also continues to actively pursue its previously announced strategy to monetize its digital imaging patent portfolio. Kodak remains focused on meeting its commitments to customers and suppliers, and on delivering on its strategy to become a profitable, sustainable digital company."
"It is not unusual for a company in transformation to explore all options and to engage a variety of outside advisers, including financial and legal advisers. Jones Day is one of a number of advisers that Kodak is working with in that regard."