Eastman Kodak Hires Law Firm for Restructuring Advice (EK)

Eastman Kodak Co. (NYSE: EK) has hired a law firm to advice on restructuring as the company continues to face pressure from investors.

Rochester, New York-based Eastman Kodak hired law firm Jones Day to advice on restructuring. However, the company said that it has no plans to file for bankruptcy protection. The hiring of Jones Day indicates that the company is increasing its efforts to make sure it is financially capable of completing a strategic transformation.

Eastman Kodak shares have fallen sharply since last week after the company said in a SEC filing that it borrowed $160 million against a credit line. On Friday, the stock saw a huge drop as worries about its turnaround prospects continues. Eastman Kodak shares fell 53.84% to $0.780 in Friday’s trading sessions. Earlier in the day, the stock touched a new 52-week low of $0.54. The stock has fallen almost 67% since September 23.

After market close on Friday, Kodak issued a press release in which it confirmed the hiring of law firm Jones Day. The company said that it was committed to meeting all of its obligations and has no intention of filing for bankruptcy. The company said that it exploring all possible strategic options.

Earlier in the year, Eastman Kodak had said that it was planning to sell its digital imaging portfolio. However, there seems to no real progress on the patent sale issue.

Kodak has struggling in the last few years, losing money on a consistent basis. The borrowing of $160 against credit line last week raised questions about the company’s liquidity position, although it had $957 million in cash on hand at the end of June 30, 2011.

As worries about the health of the company escalated, Kodak’s CEO Antonio Perez made an effort to ease concerns among employees at a town hall meeting earlier in the week. Perez told the company’s staff that there are no plans of filing for bankruptcy protection at this moment.

Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.