Kodak denies bankruptcy but ‘explores options’
October 3, 2011
Kodak has denied it plans to file for bankruptcy following what it dismissed as ?rumours? in the investment markets.
Widespread speculation over the firm?s future followed a Wall Street Journal report stating that Kodak has hired restructuring advisers.
Kodak?s share price plunged 54% on Friday after reports it had hired Jones Day, a law firm known to have advised large companies on bankruptcies.
In response, Eastman Kodak?s head office in Rochester, United States said it was ?not unusual for a company in transformation to explore all options and to engage a variety of outside advisers, including financial and legal advisers?.
In a statement Kodak added. ?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.’
Last week, Kodak was forced to defend its digital camera business after press reports that claimed it was struggling to compete against its rivals.
A week ago, shares in the iconic photography brand fell more than 25% after the firm announced it was borrowing $160m for ‘general corporate purposes’.