Kodak has been in troubled waters since quite some time. The company is trying hard to sell off its patent portfolio for a sizable sum which, if done successfully, can fetch it enough money to avoid bankruptcy. U.S. Bankruptcy Court has now given Kodak an extension till the end of February to get this done.
Kodak is in a somewhat poor position to negotiate with the looming bankruptcy court deadline. The company wishes to fetch as much as $2.6 billion through the sale of its imaging patents but so far, the bids have fallen well below that target.
On the other hand, if Kodak is unable to sell off the patents till the end of the extension, they will inevitably go to the creditors for an amount which wouldn’t be very welcome by the company.
The company needs to get its act straight for a $793 million loan package and selling its patents for the right price is critical for accomplishing this. Among prospective buyers of its key imaging patents are a number of tech giants such as Apple and Google.
However, so far, the bids on these patents haven’t gone beyond $250 million. If Kodak is unable to successfully sell off the patents and gather the required sum, the company may have to officially continue on the path of bankruptcy which would mean the end of line for it.
On the contrary, if it does furnish enough money to pay off the creditors and quality for a loan package, it intends to trim down its size and focus on a few select products to sustain itself in an increasingly fierce market.
Source: Reuters
Courtesy: Apple Insider
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