Kodak Co shares lost quite half their worth on Friday because the company employed a law firm well-known for bankruptcy cases, triggering speculation that the photography pioneer may file for bankruptcy.
Kodak, that delivered the primary client camera in 1888, denied it had a bankruptcy set up, saying it had been committed to meeting its obligations and remains yearning for ways in which to "monetize" its patent portfolio.
Once synonymous with photography, Kodak has struggled with the move to digital cameras and didn't flip a profit since 2007. it's been exploring a purchase of its digital imaging patents, value an estimated $2 billion, and employed investment bank Lazard in July to explore choices.
Rochester, New York-based Kodak said it's "no intention of filing for bankruptcy," once its shares plunged the maximum amount as 68 per cent to 54 cents before recovering slightly to shut down 53.8 per cent at seventy eight cents on the big apple Stock Exchange.
The company's market worth plummeted to roughly $210 million on Friday, down from a lofty height of $31 billion in February 1997, as shown by regulatory filings. the value to insure Kodak's debt with credit default swaps (CDS) surged on Friday as investors priced in bigger bankruptcy risk.
Kodak had already scared markets on Monday when it tapped a credit line however refused to divulge its money position. The stock dived to a 38-year low that day.
Then investors took fright once more Friday once Bloomberg reported that potential patrons for its patent portfolio were cautious regarding going ahead with a bid as they may risk having Kodak creditors sue them once a bankruptcy filing.
Mark Kaufman, an analyst at Rafferty Capital Markets, said that Kodak urgently required to seal a patent deal.
"I do not believe bankruptcy is inevitable. this can be a fairly valuable portfolio, they ought to get an honest value," he said. "They got to get this (sale) out of the method. they have to sell this portfolio, raise some form of money."
The company said in July that it employed Lazard to advise on strategic choices for its patents -- increasingly seen as lucrative assets. Bankrupt Canadian company Nortel fetched $4.5 billion in an exceedingly patent sale in June, conjointly run by Lazard. Google Inc agreed in August to shop for Motorola Mobility for $12.5 billion primarily for its patent portfolio.
One professional -- Robert Miller, a professor at Villanova University faculty of Law -- said filing for bankruptcy may very well find yourself boosting the worth of a patent sale.
Even if the corporate holds a strong, public auction outside of bankruptcy, the headache of litigation still looms if Kodak goes bankrupt later, said Miller.
Selling the assets as a part of a bankruptcy court-supervised auction would solve that concern, Miller said.
Kodak confirmed that it's employed Jones Day however failed to justify why, beyond saying it had been "not uncommon for a corporation in transformation to explore all choices."
The company's board isn't considering replacing Perez at this point, in line with a story within the Wall Street Journal, that cited 2 individuals at home with the matter.
Kodak CDS prices rose to seventy per cent Friday from sixty one per cent Thursday, knowledge supplier Markit said. which means it might price $7.0 million in upfront payments, plus $500,000 a year to insure $10 million debt if Kodak debt for 5 years.
Kodak, that delivered the primary client camera in 1888, denied it had a bankruptcy set up, saying it had been committed to meeting its obligations and remains yearning for ways in which to "monetize" its patent portfolio.
Once synonymous with photography, Kodak has struggled with the move to digital cameras and didn't flip a profit since 2007. it's been exploring a purchase of its digital imaging patents, value an estimated $2 billion, and employed investment bank Lazard in July to explore choices.
Rochester, New York-based Kodak said it's "no intention of filing for bankruptcy," once its shares plunged the maximum amount as 68 per cent to 54 cents before recovering slightly to shut down 53.8 per cent at seventy eight cents on the big apple Stock Exchange.
The company's market worth plummeted to roughly $210 million on Friday, down from a lofty height of $31 billion in February 1997, as shown by regulatory filings. the value to insure Kodak's debt with credit default swaps (CDS) surged on Friday as investors priced in bigger bankruptcy risk.
Kodak had already scared markets on Monday when it tapped a credit line however refused to divulge its money position. The stock dived to a 38-year low that day.
Then investors took fright once more Friday once Bloomberg reported that potential patrons for its patent portfolio were cautious regarding going ahead with a bid as they may risk having Kodak creditors sue them once a bankruptcy filing.
Mark Kaufman, an analyst at Rafferty Capital Markets, said that Kodak urgently required to seal a patent deal.
"I do not believe bankruptcy is inevitable. this can be a fairly valuable portfolio, they ought to get an honest value," he said. "They got to get this (sale) out of the method. they have to sell this portfolio, raise some form of money."
The company said in July that it employed Lazard to advise on strategic choices for its patents -- increasingly seen as lucrative assets. Bankrupt Canadian company Nortel fetched $4.5 billion in an exceedingly patent sale in June, conjointly run by Lazard. Google Inc agreed in August to shop for Motorola Mobility for $12.5 billion primarily for its patent portfolio.
One professional -- Robert Miller, a professor at Villanova University faculty of Law -- said filing for bankruptcy may very well find yourself boosting the worth of a patent sale.
Even if the corporate holds a strong, public auction outside of bankruptcy, the headache of litigation still looms if Kodak goes bankrupt later, said Miller.
Selling the assets as a part of a bankruptcy court-supervised auction would solve that concern, Miller said.
Kodak confirmed that it's employed Jones Day however failed to justify why, beyond saying it had been "not uncommon for a corporation in transformation to explore all choices."
The company's board isn't considering replacing Perez at this point, in line with a story within the Wall Street Journal, that cited 2 individuals at home with the matter.
Kodak CDS prices rose to seventy per cent Friday from sixty one per cent Thursday, knowledge supplier Markit said. which means it might price $7.0 million in upfront payments, plus $500,000 a year to insure $10 million debt if Kodak debt for 5 years.
