FINANCIAL TIMES: Eastman Kodak has begun preparations for a possible bankruptcy filing even as it continues to pursue asset sales to raise much-needed cash, according to people familiar with the increasingly difficult financial situation at the company.
The US photographic products group has opened discussions with banks over a new line of debt that the company could tap after a filing under Chapter 11 of the US bankruptcy code, which allows companies to continue to trade while reorganising their finances.
News that Kodak had started the preparations for a possible bankruptcy, first reported by the Wall Street Journal, wiped 28 per cent from its already-battered stock price yesterday. The shares ended the day at 47 cents, more than 90 per cent below their level of a year ago… (more)
