Bankruptcy Looming: Kodak Plunges 60%

Posted on September 30, 2011 at 3:03pm by

Shares of Eastman Kodak were halted this afternoon and are now down $1.01, or 60%, at 68 cents after The Wall Street Journal and Bloomberg both reported the company is facing massive restructuring or perhaps bankruptcy.

The Journal’s Mike Spector and Dana Mattioli this afternoon write that the company has hired a law firm called Jones Day to gain restricting advice as bit faces growing concerns from investors over its turnaround prospects.b

And Bloomberg’s Jonathan Keehner and Jeffrey McCracken wrote a little while after that that Kodak is considering a variety of options, including filing for bankruptcy, because potential bidders for its patent holdings, including Google, are worried about the safety of such a transaction if Kodak were to become insolvent:

Some potential buyers of the patents are reluctant to proceed with bids because a purchase may amount to a so-called fraudulent transfer if Kodak becomes insolvent, said the people, who asked not to be named because the talks are private.