Kodak seeks to raise cash through patents sale

Eastman Kodak Co is in advanced talks with Citigroup Inc to obtain financing that would be used if the money-losing photography company filed for bankruptcy protection, according to Bloomberg News which cited three people familiar with the matter.

Advisers to Kodak had also lined up a "stalking horse" that would act a the lead bidder for a patent portfolio if it were to be auctioned via the Chapter 11 process, the newswire said yesterday, citing one of the people.

Shares of Kodak were down 7.2 cents to 60 cents in after-hours trading after the report. The shares had closed regular trading down 14.3 cents, or 17.5 per cent, at 67.2 cents.

Kodak has a long history of digital innovation. In 1975, it invented the digital camera, and in 1976, Kodak invented the Bayer colour filter array, which allows digital cameras to capture images in colour.

However, rivals were able to quickly embrace digital camera technology to forge ahead Kodak, which is now trying t raise cash through the sale of a large patent portfolio, to avoid bankruptcy.

It is pursuing patent litigation against such companies including Apple Inc, Taiwan's HTC Corp and BlackBerry maker Research in Motion Ltd, which could give its patent portfolio a significant boost if successful. (See: Kodak sues Apple, HTC over patent infringement)