Links: ZDNet.com Blog Entry / Kodak Press Release / The Wall Street Journal Article /

When the the New York Stock Exchange (NYSE) informed the Eastman Kodak Company that it was receiving a continued listing standards notice as a result having an average closing price of the Company's common stock was less than $1.00 per share over a period of 30 consecutive trading days, it convinced Kodak management to take drastic steps for the company to survive. Apparently this includes putting their 1,100 patents up for sale in order to raise $1 billion in debtor-in possession financing.

Eastman Kodak is prepping for a Chapter 11 bankruptcy filing that could put an interesting twist in the patent wars.

According to the Wall Street Journal, Kodak is looking for $1 billion in debtor-in possession financing, which keeps companies running in a restructuring, with the idea that it would sell its 1,100 patents in an auction.

In other words, Kodak is betting that it can land capital like Nortel Networks did - via a bankruptcy court auction. Kodak is trying to sell the patents to avoid a bankruptcy filing.

Kodak's patents could come in handy in the ongoing patent wars. All smartphones have digital photography technology.

(Source: ZDNet.com, Kodak, The Wall Street Journal)

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