Responding to rumours it says are circulating in capital markets, Kodak has issued a statement saying it is committed to meeting all of its obligations and “has no intention of filing for bankruptcy”.
It says the hiring of restructuring lawyers Jones Day is “not unusual” for a company in transformation.
The company says it continues to actively pursue its previously announced strategy to monetise its digital imaging patent portfolio.
“Kodak remains focused on meeting its commitments to customers and suppliers, and on delivering on its strategy to become a profitable, sustainable digital company,” it says.
“It is not unusual for a company in transformation to explore all options and to engage a variety of outside advisers, including financial and legal advisers. Jones Day is one of a number of advisers that Kodak is working with in that regard.”
A statutory Cautionary Statement provides a number of warnings on factors which might affect forecasts, pursuant to the ‘safe harbor provisions’ of the Private Litigation Reform Act of 1995.
On Friday, the ‘Wall Street Journal’ said the move signalled Kodak was intensifying efforts to ensure it has the financial wherewithal to complete a difficult strategic and financial revamp.
“Shares in the 131-year-old company have tumbled following Kodak's disclosure last week that it pulled $160 million from a credit line,” it said.
“That drawdown heightened concerns about the company's cash flow and triggered downgrades of its credit rating. On Friday, Kodak's bonds plunged and its shares fell 54 per cent, or 91 cents, to 78 cents, after The Wall Street Journal reported the company had hired restructuring advisers.”