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Print 20 comment(s) - last by whereisusa.. on Jan 11 at 3:04 PM

Sell patents, bit a massive loan, or close up shop?

Poor Kodak has taken a beating since the advent of digital photography. Few consumers buy film anymore and Kodak’s line of digital cameras aren’t even close to setting sales records. Kodak is facing a bleak future and has previously stated that it might be forced to close up shop as early as this year if things don't change.
 
Kodak is also facing growing personnel losses within the company. The firm has announced the loss of a third member from its board of directors in the last week. The latest loss is Laura Tyson who resigned her position on the board of Kodak Thursday. The resignation was confirmed in a SEC filing that Kodak made on Friday.
 
Tyson is a professor at the Walter A. Haas School of Business at the University of California, Berkeley. Tyson is also a member of President Obama's Economic Recovery Advisory Board and advised President Clinton when he was in office.
 
Kodak is in such dire financial straits that the firm is looking at possibly selling off patents it holds to stay solvent. It has been estimated that the patents Kodak holds are worth five times the company's current market cap.
 
The other two directors that left Kodak last week include Adam Clammer and Herald Chen. The two directors were both from a private equity firm called KKR & Co and had been on the board since 2009. 
 
Reuters reports that Kodak had also warned that it might have to raise $500 million in new debt in lieu of selling patents to stay solvent. Kodak hasn't turned an annual profit since 1997.

Source: Reuters



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RE: REALLY!?!
By christojojo on 1/2/2012 9:33:22 PM , Rating: 2
Kodak has been slow and sluggish for at least two decades. Living in Buffalo and not far away from Kodak.s home of Rochester NY. I have followed them hoping they would turn around since my early Twenties. It is sad actually.
I remember asking my ex-brother-in-law, who worked there at the time, about why they are so bad at turning around. His reply was it was all bureaucracy. He quit that place out of frustration for a job with less pay but better environment.
Seeing those three leave makes me think of rats leaving the ship. If they left I would not be surprised that the company has been pilfered already.


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