(Eastman Kodak article updated.)ROCHESTER, N.Y. ( TheStreet) -- Eastman Kodak's ( EK) shares continued to regain ground Monday amid heavy trading after the imaging company denied rumors that it may file for bankruptcy.
The statement came after The Wall Street Journal reported that Kodak had hired Jones Day for restructuring advice, sending Kodak shares plummeting in Friday's session to close below $1 per share. On Monday, the stock surged 79.5% in afternoon trading to $1.40. More than 58 million shares changed hands with less than an hour left in the day's session, compared with their average daily volume of just 15 million. 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, possibly fetching as much as $3 billion, according to some analysts. Reports surfaced last month that Kodak was working to sell off its patents. "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 said in its statement late Friday. 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." Kodak's bondholders weren't fully assured. On Thursday, Fitch cut its ratings on Kodak to CC from CCC which the ratings agency said "signifies that default of some kind appears probable." On Monday, Kodak made a $14 million payment to its bondholders, according to spokesman Chris Veronda.