Recently, there have been a number of rumors that have suggested that Kodak’s money troubles were worse then the company was letting on and that the photography company was on the verge of bankruptcy. Although executives for the company did deny this rumor, it would appear that the American company has now filed for bankruptcy.
This bankruptcy was the end result of a number of failed attempts by the company to change the tide of its fortunes. With the inability to raise sufficient cash through restructuring as well through selling off company patents and seeking damages through IP lawsuits, Kodak had no choice but to declare bankruptcy.
As it stands now, Citibank has granted the company a credit line for $950 million so as to give the company a bit of a lifeline. The funds will allow the company to pay employee salaries as well as maintain the day to day operations while they complete their restructuring. This will also allow them to continue to sell of a few of their 1,100 individual patents that they own. Currently, Kodak’s assets come in at $5.1 billion and this includes cash assets of $82 million. However, the company’s debts are estimated to be valued at $6.75 billion. Over the last 15 years, this iconic company has taken quite a tumble, at one point having a market cap of $31 billion.