A US Bankruptcy Court in Manhattan approved Kodak’s request today to extend the deadline for its bankruptcy case through February of next year. The one-time imaging giant filed for bankruptcy earlier this year, and it’s hoping to use the extra time to sell off its patent collection to pay off its creditors. And according to the report, Apple and Google are still among the potential buyers…
Reuters (via AppleInsider) reports:
“Eastman Kodak Co won court permission on Wednesday to retain exclusive control of its bankruptcy case through Feb. 28 as it tries to execute a $793 million financing offer from a group of bondholders.
Judge Alan Gropper approved the extension at a hearing in a U.S. Bankruptcy Court in Manhattan, allowing Kodak to move forward with its plan without creditors pushing competing proposals. The plan would outline how to repay creditors and exit bankruptcy.”
A consortium led by both Apple and Google bid on Kodak’s patents during an auction back in August. But the offer fell well short of the $2.6 billion Kodak was looking for. As part of its new financing deal, however, Kodak only needs to raise $500 million from the sale of its intellectual property. And the company said on Monday that it was “confident” that it could fetch that amount.
If the plan does work out, Kodak will emerge from bankruptcy as a completely different company. With all of its IP gone, along with much of its document and personalized imaging businesses, it’s said that the firm will focus on commercial imaging.