Kodak has been trying to sell its patents, which number about 1,100 via a competitive bidding process since August. However, sales efforts have been slowed by the concerns of bidders --- apparently rightfully so --- that Kodak might seek bankruptcy protection.
If Kodak cannot sell its patents quickly enough, it would seek debtor-in-possession financing to keep the company operating while it runs an auction for the patents. Sources said that Kodak is already in discussions with several large banks including J.P. Morgan Chase, Citigroup and Wells Fargo for such financing.
The company could then re-list the patents in a court-supervised auction. Kodak could be hoping for a payout similar to Nortel Networks patent sale last year, which resulted in a sale to a consortium of companies for $4.5 billion, which turned out to be much more than initially expected.
As if things aren't dire enough for the company, on Tuesday Kodak revealed that it has been warned by the New York Stock Exchange that its stock could be delisted unless it does not trade higher than $1.00 over the coming half year. Kodak stock (EK) finished Wednesday at $0.47.