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.
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