Kodak Bankruptcy – The stock of Eastman Kodak Co. plummeted Wednesday following bankruptcy rumor ramifications.
It seems as though many of the photographic film company investors had no other choice but to dump their stock once they heard of the companies financial difficulties.
The multinational company’s shares plunged to an incomparable low following the Wall Street Journal reporting that they were in preparation to file Chapter 11 if they were unable to negotiate deals for an abundance of digital-imaging patents.
According to analysts, the patents may bring in as much as $3 billion; however, they have been attempting to sell them since July 2010 with no success.
In November 2010, the longstanding business stated that if they were unable to sell the patents within a year, they would be finically bankrupt. They reported their ninth quarterly loss in three years, it was a third-quarter decline of $222 million. In addition, they claim that their cash reserve fell 10 percent within three months.
In the twelve years prior to 2011, the photo company became demolished by overseas competitors and brandished by a digital reform. As their shares plummeted over an additional 80 percent in 2011, they accelerated the arrangement to sell critical assets.
To make matters even worse, the New York Stock Exchange told them that their company’s shares would be dropped from their selection if they continued to stay under $1 for the next six months.
According to recent reports, they could begin the bankruptcy process as soon as February. In the past two weeks, three Kodak board members have resigned and spokespeople have declined to speak to anyone about their situation.
Eastman Kodak is headquartered in Rochester, New York, and they are incorporated in New Jersey.