Kodak shares plunge on report company might seek bankruptcy protection

Linda Young – AHN News Writer

Rochester, NY, United States (AHN) – Eastman Kodak Co. stock shares plunged 28 percent in value on speculation that the 131-year-old photography company is preparing to seek bankruptcy protection.

Kodak once ranked among America’s largest corporations. The former blue chip company once attracted engineers, scientists and Ph.D.’s from around the world eager to work on the latest in imaging technology at its Rochester, New York headquarters. At its peak, Kodak employed 145,000 people worldwide.

Shares dropped 18 cents to a record low of 47 cents per share after the Wall Street Journal published a report speculating Kodak might seek Chapter 11 bankruptcy protection. The report was fueled by an announcement last year that Kodak needed to raise cash to continue operating in 2012 and also by its struggle to sell some key assets.

The news caused retirees to worry about the future of their benefits.

A bankruptcy filing would allow the company to continue to operate and could come within the next month or so.

Kodak has several billion dollars worth of assets, including more than 1,000 patents it could sell to raise cash. But it takes time to find buyers and complete sales.

In the meantime, the company is reportedly seeking a loan.

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