Bloomberg News

Kodak Rises After Saying It Doesn’t Plan on Bankruptcy

October 03, 2011

(Updates stock price in second paragraph.)

Oct. 3 (Bloomberg) -- Eastman Kodak Co., the unprofitable 131-year-old camera company, climbed the most since at least 1974 after saying it doesn’t plan to seek bankruptcy protection.

The shares advanced 56 cents, or 72 percent, to $1.34 at 4:15 p.m. in New York Stock Exchange composite trading, recovering from a drop of 54 percent Sept. 30.

Kodak will make a coupon payment today, spokesman Gerard Meuchner said today in an e-mail. The Rochester, New York-based company said Sept. 30 it had “no intention” of filing for bankruptcy protection.

Kodak, which has lost money for three straight years as it tries to transform into a digital printing and imaging company, is weighing options including a bankruptcy filing because of concerns raised by possible buyers of its patent portfolio, said three people with direct knowledge of the process.

Some potential bidders for the patents are wary of proceeding because a purchase may amount to a so-called fraudulent transfer if Kodak is insolvent, said the people, who asked not to be named because the talks are private. Kodak confirmed Sept. 30 it hired Jones Day to advise it on options.

--Editors: Kevin Orland, Robin Ajello

To contact the reporter on this story: Chris Burritt in Greensboro at cburritt@bloomberg.net

To contact the editor responsible for this story: Robin Ajello at rajello@bloomberg.net


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