Eastman Kodak (NYSE:EK) shares dropped about 24% on Friday on reports that the company is talking with Citigroup (NYSE:C) about providing bankruptcy financing.
According to Bloomberg, three people familiar with the matter disclosed the news, saying Kodak could seek protection from creditors within weeks. The company then would hold an auction to sell off its large cache of patents — a move that many previously thought Kodak could explore to avoid bankruptcy. Late last year, the company also said it was interested in selling its Kodak Gallery digital business.
Shares were trading around 50 cents late Friday afternoon, just days after the stock was re-energized on news of an internal restructuring. This seemed to reassure investors that Kodak was sticking with its comments in September that the company did not plan to file for bankruptcy.
Kodak shares have been trading for less than $1 for month and are in danger of being delisted by the New York Stock Exchange if they don’t make a consistent return above that mark within six months.
– Kyle Woodley, IP.com Assistant Editor
A full report from Bloomberg can be found here.