According to The Wall Street Journal, the former blue-chip company is in discussions with potential lenders to obtain about $1 billion of debtor-in-possession, or DIP, financing should it succumb to Chapter 11.
The report, which comes just a day after the New York Stock Exchange threatened to delist the penny stock, sent 132-year-old Kodak’s shares plunging another 30% to new lows.
Rochester, NY-based Kodak, which has approximately 19,000 workers, is still attempting to sell its portfolio of 1,100 digital patents, which could be worth around $3 billion.
If the sale plans fall through, Kodak may need to file for bankruptcy later this month or in early February, but it would continue to try to unload the patents through a court-supervised bankruptcy auction, the paper reported. Kodak would also continue to operate under such a scenario, the Journal said.
Once synonymous with the imaging world, Kodak has hit a cash crunch and is drowning in a river of red ink due largely to the adoption of digital imaging. In the quarter ended September 30, Kodak posted an operating loss of $174 million, its fourth consecutive loss. At the time, it listed $862 million of cash and equivalents on its balance sheet.
Its stock was worth $20 a share three years ago, but has since crumbled well below $1. Its market cap started the day at just $176 million, a far cry from its all-time high of almost $30 billion in 1997, according to Dow Jones Newswires.
After plummeting as low as 44 cents on the new report, Kodak was recently off 17.49% to 54 cents.