Eastman Kodak Co. (EK), the unprofitable 131-year-old camera maker, is weighing options including a bankruptcy filing because of concerns raised by possible bidders for its patent portfolio, three people with direct knowledge of the process told Bloomberg.
Some potential buyers of the patents are reluctant to proceed with bids because a purchase may amount to a so-called fraudulent transfer if Kodak becomes insolvent, said the people, who asked not to be named because the talks are private.
A number of suitors, such as Google Inc. (GOOG), have signed confidentiality agreements to examine the assets, said these people. If a sale were judged a fraudulent transfer, creditors could later sue for more money, said one of the people. A bankruptcy filing may help clear the way for the patent sale, said the people. The sale could fetch about $3 billion, according to estimates from MDB Capital Group.
Kodak has discussed its options with law firms Kirkland & Ellis LLP and Jones Day, the people said. It hasn’t yet hired a firm and a filing isn’t imminent, they said. Lazard Ltd. is advising Kodak on options for the patent portfolio….
Read more about it at http://www.bloomberg.com/news/2011-09-30/kodak-said-to-weigh-bankruptcy-filing.html
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