Kodak has struggled to gain momentum in its digital camera business as its printing business flailed, but its digital-imaging patents could be worth far more than the 131-year-old camera and imaging company itself , fetching as much as $3 billion, according to some analysts. Reports surfaced last month that Kodak was working to sell off its patents. Commenting on its hiring of Jones Day, Kodak said Friday it is "committed to meeting all of its obligations" and "also continues to actively pursue its previously announced strategy to monetize 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 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," Kodak added. Jones Day is an adviser on bankruptcy, but also on other paths companies may take to boost their financial positions, including raising new debt or equity, or negotiating swaps of debt forgiveness for ownership stakes. Kodak confirmed it had hired Jones Day, but said it "is one of a number of advisers that Kodak is working with." On Monday, Kodak said it made a $14 million payment to its bondholders, according to spokesman Chris Veronda. That followed word on Thursday that Fitch Ratings cut its ratings on Kodak to CC from CCC which it said "signifies that default of some kind appears probable." Earlier last week , Kodak drew $160 million against its credit line saying it was borrowing the funds "for general corporate purposes," according to a filing with the Securities and Exchange Commission. With an interest rate of 1.5%, Kodak has until 2016 to repay the loan. The drawdown followed Kodak's move in April when it entered into an agreement for a new credit facility of up to $400 million.