This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Apple, Google, RIMM: Kodak's Patent Buyers?

Other potential bidders, according to Poltorak, could be non-practicing entities, or companies that would acquire the patents for the purpose of licensing them or enforcing them among unauthorized users; patent aggregators like RPX (RPXC) which might consider the acquisition as a means of appeasing its members; and "opportunistic hedge funds and private-equity groups interested in investing in an alternative asset class."

Poltorak said the first round of official bidding is expected in mid-October, so it's any day now.

Meanwhile, Kodak shares have swung wildly in recent sessions amid unusually heavy trading, even falling below $1 on Sept. 30 after The Wall Street Journal reported that Kodak had hired Jones Day for restructuring advice.


The company issued a statement after the closing bell that day denying any intention of filing for bankruptcy. Commenting on its hiring of Jones Day, Kodak said 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."

Last week Kodak said it made a $14 million payment to its bondholders, according to spokesman Chris Veronda. That followed word days earlier that Fitch Ratings had cut its rating on Kodak to CC from CCC which it said "signifies that default of some kind appears probable." In late September , 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.

Kodak's Future

If Kodak is able to sell its patents, and get as much as $3 billion for them, it would buy the company time to give its inkjet printer business a much-needed boost, according to Gimme Credit analyt David Novosel.

2 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,979.13 +59.54 0.35%
S&P 500 1,986.51 +4.91 0.25%
NASDAQ 4,526.4820 -1.0320 -0.02%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs