Kodak’s Future Looks GRIM
A filing made with the United States bankruptcy court in Manhattan indicates that Kodak (PINK:EKDKQ) will delay the sale of approximately 1,100 of its digital imaging patents as the company attempts to stay solvent. The proceeds from the patent portfolio’s sale, which Kodak said were valued at $2.6 billion, were meant to repay creditors in its bankruptcy case.
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The photography pioneer filed with the bankruptcy court Friday to delay “until further notice” a September 19 hearing to approve the sale. The document said that Kodak and its affiliates “are continuing to explore other alternatives with respect to the digital imaging patent assets and their intellectual property more broadly, and may not reach acceptable terms with parties via the auction process.”
Kodak’s transaction has been slowed, according to published reports, because the bids that Kodak received for the patents were lower than it expected, including bids lower than $500 billion from both Apple (NASDAQ:AAPL) and Google (NASDAQ:GOOG).
“Kodak continues active negotiations with regard to the potential sale of its digital imaging patent portfolio,” a spokesman for the company said. However, buyers accuse Kodak of attempting to garner additional value from the portfolio with repeated litigation. The one-time photography icon now plans to continue patent discussions with its buyers directly rather than pursue additional extensions of the court date.
With the sale of its patent portfolio uncertain, Kodak announced plans in late August to sell the camera-film business that helped make it a blue-chip company and shift focus to commercial packaging and printing rather than photography.
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