Kodak Postpones Patent Sale

by San Antonio Attorney

Eastman Kodak Co. released a statement on Friday saying that it may drop its efforts to sell a collection of digital imaging patents. In its place, it will create a new licensing firm to aid in repaying its creditors through bankruptcy.

Kodak has relied on selling approximately 1,100 patents, which it estimated to be worth up to $2.6 billion, to repay its creditors as it changes its business to printing photography and commercial packaging.

However, Kodak said in its filing with the bankruptcy court that it will postpone “until further notice” a court hearing on Sept. 19 to confirm the sale plan.

In its filing, Kodak said it continues the sale talks, while exploring further other options with regards to the patent assets as well as their intellectual property. The company believes that it may not arrive at desirable terms through the auction process.

Kodak also said that if a deal does not come to pass, it may establish a licensing company for the digital printing patents in order to help repay its creditors.

Based on reports, the offers that the company received were far below than what it had expected, which includes offers under $500 million from bidders such as Google and Apple.

According to the spokeswoman of Kodak, the sale talks are still ongoing and that there is no final decision whether the company will license or sell the patents.

Since the start of the patent sale, it has been dealing with various issues. Prospective buyers have been worried that Kodak has been squeezing a great deal of the value from the portfolio with repetitive litigation.

Eventually, Kodak struggled with its efforts to litigate its vital patent, one relating to how images are previewed by digital camera models, which further undermines the value of the portfolio.

 

–   There is a common misconception that bankruptcy always involves liquidating all of a debtor’s nonexempt assets to repay creditors. The truth is a debtor also has an opportunity to restructure debts. A business can make an agreement with creditors so that the normal business operations continue. For an individual debtor, the bankruptcy laws provide an opportunity to eliminate debts through a repayment plan, which does not involve selling a debtor’s nonexempt assets. An experienced Bankruptcy Lawyer San Antonio knows everything about bankruptcy, as well as other options for debt management.

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