Tuesday, August 14, 2012

Eastman Kodak Company (PINK:EKDKQ) Extends Auction Deadline Amid Low Bids

Bankrupt camera maker Eastman Kodak Company (PINK:EKDKQ) on Monday extended the auction deadline for its patents saying that it was still in discussions with its bidders.

In a statement the company said that the auction was ongoing. It did not provide any further details on the plea of confidentiality agreements.

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There was no information also on the length of the extension, though the company said it expected to submit regulatory filings which would have more information about its financial projections and about its businesses.

Kodak filed for bankruptcy in January 2012 and put up its 1100 digital patents up for sale to raise cash and pay down debt as part of its court-led restructuring. The patents have been estimated as having a total worth of up to $2.6 billion.

The bids however are reported to have come in at much lower values than expected. The Wall Street Journal had reported that Apple, Google and Microsoft had been among the bidders.

The company had been expected to announce a winner on Monday ahead of a bankruptcy court hearing on August 20.

Kodak, that has been unable to keep up with the competition in digital imaging has lost more than $600 million so far this year and had borrowed close to $700 million in bankruptcy financing.

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The company expects to be out of bankruptcy by early 2013 for which it will have to present a restructuring plan to the court by this fall.

Kodak’s sale of its patents has also been marred by ownership claims by various companies such as Apple, against whom it won a partial reprieve with regard to two of its patents.

Shares of EKDKQ jumped 8% at mid day session.

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