Kodak Disputes Bankruptcy Rumors
It wouldn’t be the first big name company to have sought bankruptcy protection this year. Borders and Blockbuster both found themselves unable to recover from a serious debt burden earlier this year, and both resolved their financial troubles with the help of Chapter 11.
Kodak, however, is saying they are not planning to seek bankruptcy protection, despite many rumors to the contrary. The rumors began shortly after it was reported that Kodak executives met privately with a law firm. Kodak released a statement saying, “It is not unusual for a company in transformation to explore all options and to engage a variety of outside advisers, including financial and legal advisers.”
A Snapshot Of The Future
Regardless of their debt resolution plan one thing is for certain, Kodak is suffering financially and their market shares have begun to plummet. Kodak, a publically traded company, lost more than half its value in a single day, last Friday. Investors have been off loading Kodak shares as quick as possible over the past few days.
Losing more than $1.8 billion since 2007, Kodak now owes more than $160 million to creditors. The 131 year old business has been struggling to compete with changing technology for years. The large shift towards digital cameras and memory cards, along with fierce foreign competition, has undermined sales for the past few years.
As Kodak fights to stay alive in a dying market, it reassures remaining shareholders that a plan is in the works to regain profitability and calms fears by saying,” Kodak is committed to meeting all of its obligations and has no intention of filing for bankruptcy.”