The hottest Kodak seeks $900million to rescue thou

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Kodak seeks $900million to rescue thousands of patent portfolios for sale

according to foreign media reports, sources revealed that while trying to sell their patent portfolios, Eastman Kodak Co. has been negotiating with several hedge funds to seek about $900million in financial assistance in order to support the company's poor financial situation of SAMPE Beijing Branch

according to the source, Kodak has held such discussions with private equity funds Cerberus Capital Management LP, silver point capital LP, centerbridge partners LP and Highbridge Capital Management LLC since about mid September. These negotiations are preliminary, and it is not known whether they will succeed. Kodak did not disclose details of the number of funds it might win. Although the company declined to comment, its spokesman said that as a matter of course, we are evaluating the available financing strategies

the financing negotiation action shows that Kodak is worried about its cash situation. The company is trying to sell its portfolio of up to 1100 patents and realize the strategic transformation of the company from relying on the hopeless film business to the personal consumer and commercial printer business. Kodak will release its third quarter financial report on November 3. If it can get foreign capital injection at this time, it is undoubtedly a surprising good news for a company whose share price has plummeted in recent weeks. On Monday, Kodak's shares in 10 large plastic markets fell 3% to close at $1.28 on the New York Stock Exchange

the source said that the financing of $900million may be mainly used to repay Kodak's existing senior debt, and the rest will be injected into the company's cash pool. As Kodak is seeking to sell its patent portfolio, there are rumors that the company may file for bankruptcy. Therefore, this financing may cool investors' suspicion and dispel the understanding that the company is going bankrupt. In addition, this financing can also add negotiating leverage to the buyers when the samples of patents are disc springs and leaf springs, giving Kodak more time to choose a better patent sale price without being forced to sell these patents immediately due to urgent cash needs

Lazard, an accounting consulting company, began to sell these patents for Kodak in August this year. By the end of June, Kodak had $957million in cash. However, the company hopes to get more cash by selling patents. Due to the lack of understanding of Kodak's recovery measures, the company's creditors have been very unfriendly. Kodak sued Collins ink last week, which is the main supplier of Kodak printer ink. The company stopped doing business with Kodak this month because of concerns about Kodak's financial situation. Kodak said in the indictment that it was committed to fulfilling its due obligations to suppliers and other creditors. On Monday, the two companies reached an agreement in court, and the two companies agreed to temporarily resume the performance of the contract between the two sides until the court reopens next week

according to the source, during the financing negotiations with the fund company, the bank that gave Kodak credit still insisted that Kodak should not submit an application for bankruptcy protection

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