Eastman Kodak Company (PINK:EKDKQ), which is under bank-led restructuring after filing for bankruptcy in January 2012, said on Thursday it has initiated the process of disposing off its Personalised Imaging and document imaging business.
The photography pioneer found itself struggling for survival with the progress in digital imaging technologies that its rivals were faster in adopting.
The company is disposing off its non-core businesses as part of its revival process. It expects to complete the restructuring process and emerge from bankruptcy in 2013.
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The sale of businesses, apart from reducing costs and streamlining the company's operations, will also help in raising much-needed funds requited pay down debt.
Simultaneously the company has put on the auction block 1100 digital patents expecting it to fetch more than $2 billion.
The auction for the patents started in early August, but reports suggest that the bids that came in were much less than what was expected.
This prompted the company to extend the time of the auction to more than the initially scheduled nine days. It also said in a statement that it had taken no firm decision to sell the patents and may also retain the portfolio as an alternative source of recovery for creditors.
Wall Street Journal reported that Apple and Google had formed a cartel in their bids for the patents, prompting a hedge fund, which holds bonds of Kodak, to ask for a probe into the integrity of the auction process.
Kodak said that it was in discussion with various parties regarding the sale of the patents.
Shares of EKDKQ jumped over 12% in early trade.