Nearly two weeks after Eastman Kodak Co. announced a major change in leadership, rumors are circulating that the 131-year-old photography company is preparing to file for bankruptcy in the next few weeks.
People familiar with the matter told the Wall Street Journal that while Kodak is attempting to sell off some of its patents in order to avoid Chapter 11, it also has started to prepare a bankruptcy filing in case it can’t successfully sell its portfolio. The company reportedly is meeting with J.P. Morgan Chase & Co., Citigroup Inc. and Wells Fargo & Co. to discuss $1 billion in financing to sustain its operations during bankruptcy proceedings. Kodak also hired new restructuring lawyers in early December 2011.
Kodak is expected to file for bankruptcy this month or early next month. While under bankruptcy protection, the company would sell its 1,100 patents through a court-supervised auction.