Eastman Kodak (NYSE:EK) is weighing options, including a bankruptcy filing, due to concerns raised by possible bidders for its patent portfolio, according to a Bloomberg report, which cited three people with direct knowledge.
Some potential buyers of the patents are reluctant to proceed because of concerns that a purchase could amount to a fraudulent transfer if Kodak becomes insolvent.
Several prospects, including Google (NASDAQ:GOOG), have signed confidentiality agreements to examine assets. Creditors could later sue for more money if the sale is considered a fraudulent transfer.
Eastman Kodak has a potential upside of 552.2% based on a current price of $0.69 and an average consensus analyst price target of $4.5.
Eastman Kodak is currently below its 50-day moving average (MA) of $2.54 and below its 200-day MA of $3.40.
In the last five trading sessions, the 50-day MA has fallen 2.37% while the 200-day MA has slid 2%.
Eastman Kodak Company develops, manufactures, and markets imaging products. The company provides professional and consumer digital cameras, laser images for radiologists, and photographic films for professionals and amateurs. Kodak also provides digital services for cinematographers, document scanners, aerial images, digital printers for commercial customers, and flat panel displays.
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