Kodak Patent Auction Results Deadline Pushed Back
By: Caroline Tucker
Updated: August 23, 2012
Kodak says it is delaying the announcement of its patent sale results.
There was a 5pm deadline for the auction results, but shortly before then Kodak released a statement saying that it was extending the timeline.
"Kodak and its creditors have agreed to extend the timeline for announcing the outcome of the patent auction in light of continuing discussions with bidders. The auction, which is a complex and dynamic process, is ongoing. Like all participants, Kodak is still bound by the Court Order on confidentiality, and cannot comment further at this time," wrote Christopher Veronda, Kodak spokesperson.
This follows early reports that bids for the company's 1100 digital imaging patents came in low. The Wall Street Journal reported bids only came in as high as around $500 million. Kodak says they are worth up to $2.6 billion.
Bidding began last week and has been kept confidential. The money is needed to pay back $700 million Kodak has borrowed from Citigroup to date, lien holders and other creditors.
In Kodak's recent SEC filing it reported it had $1.3 billion in cash on hand at the end of June.
Kodak reported to the SEC that if it's auction was not successful it would would look at other options to raise cash including: licensing patents, selling off businesses, slowing down digital investment, and/or searching out other financing.
"Kodak also noted that, in conjunction with discussions with its creditors, it has agreed to make publicly available certain information, including preliminary financial projections about the Company's businesses. This disclosure is being filed today with the Securities and Exchange Commission on Form 8-K," wrote Veronda.
When asked what the timeline was for the announcement of the patent auction, a Kodak spokesperson said he could not comment further than the statement.
There was a 5pm deadline for the auction results, but shortly before then Kodak released a statement saying that it was extending the timeline.
"Kodak and its creditors have agreed to extend the timeline for announcing the outcome of the patent auction in light of continuing discussions with bidders. The auction, which is a complex and dynamic process, is ongoing. Like all participants, Kodak is still bound by the Court Order on confidentiality, and cannot comment further at this time," wrote Christopher Veronda, Kodak spokesperson.
This follows early reports that bids for the company's 1100 digital imaging patents came in low. The Wall Street Journal reported bids only came in as high as around $500 million. Kodak says they are worth up to $2.6 billion.
Bidding began last week and has been kept confidential. The money is needed to pay back $700 million Kodak has borrowed from Citigroup to date, lien holders and other creditors.
In Kodak's recent SEC filing it reported it had $1.3 billion in cash on hand at the end of June.
Kodak reported to the SEC that if it's auction was not successful it would would look at other options to raise cash including: licensing patents, selling off businesses, slowing down digital investment, and/or searching out other financing.
"Kodak also noted that, in conjunction with discussions with its creditors, it has agreed to make publicly available certain information, including preliminary financial projections about the Company's businesses. This disclosure is being filed today with the Securities and Exchange Commission on Form 8-K," wrote Veronda.
When asked what the timeline was for the announcement of the patent auction, a Kodak spokesperson said he could not comment further than the statement.
