ROCHESTER (dpa-AFX) - Troubled imaging company Eastman Kodak Co. (EK) is in talks with Citigroup Inc. (C) to provide financing to be used if the company makes a bankruptcy filing, Bloomberg reported quoting three people familiar with the matter. The discussions are in an advanced stage.
Kodak is reported to be filing for bankruptcy protection within weeks and seeks $1 billion of debtor-in-possession financing to operate during the protection period. The company plans to sell its patent portfolio and Kodak's advisers are reportedly preparing a frontliner bidder, or the stalking horse, for this portfolio.
The photography company has been going through a lean patch as its competitors adapted to digital technology much faster. Tuesday, Kodak announced a new structure by reducing its segments to two from three, with a view to transforming itself into a profitable, and sustainable digital company.
The company also has patent disputes with many technology companies. Early this week, Kodak filed patent infringement suits against Apple Inc. (AAPL) and HTC with the U.S. International Trade Commission and in a New York District Court, alleging infringement of certain Kodak patents relating to digital imaging technology.
The stock plunged over 17 percent on Thursday on the NYSE to close at $0.6720.
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