In Eastman Kodak Company’s most recent filing with the Securities and Exchange Commission, dated January 3, 2012, the publicly traded company reported receiving notice from the New York Stock Exchange (“NYSE”) warning that its stock was in danger of being delisted “because the average closing price of Kodak common shares was less than $1.00 over a consecutive 30-trading-day period.”
The one-time film giant has struggled to re-build its business as photography moves to digital imaging.
According to a report today on the Wall Street Journal Web site, Eastman Kodak Co. may file for bankruptcy if “in the coming weeks efforts to sell a trove of digital patents fall through.”
WSJ.com cited unnamed sources and noted that a spokesman for Kodak refused to comment on “market rumor or speculation.”
Kodak has six months to bring its minimum share price back above a dollar. In a press release (see the full Kodak press release below) about the NYSE notice, Kodak outlined factors that could prevent it from regaining share price compliance within a six-month period.
If Kodak does file for Chapter 11 bankruptcy protection and its proposal is accepted by a judge and its creditors, Chapter 11 bankruptcy would allow it to reorganize its finances and restructure its debts without liquidating its assets.
Filing for Chapter 11 would not result in Eastman Kodak Company common stock remaining listed on the NYSE. The company would have to be restructured and relisted. (more…)