Appears more and more likely Kodak is grooming itself for takeover. The patents would go to the suitor, as would the current cash in hand. The retiree benefits would be largely ceded to decrease liabilities. Kodak's PR comment of this morning confirming they may hold on to the patents would make no sense if they were offered 500 MIL ? It's not likely the value of these patents will increase and the legal fees for licensing litigation, etc. would likely prove too costly for Kodak. Worth noting is Kodak just yesterday had restructured contracts deals with current movie film clients, and although these companies showed good faith in Kodak, it appears there is clause allowing Kodak to get out of these contracts, and perhaps the film business altogether, with something like 90 days notice. Again, with 400 MIL in annual revenues from these contracts, why would Kodak want out? Seems to me this may also be part of the grooming process for takeover. It is possible Kodak entered BK for BK court protections while in process of being courted for takeover. And, their recent request for reinstatement of the EXCEL program for executive bonuses, which as I understand is largely based on performance of Kodak's common stock, seems to lend even further credence. Let us also not forget the international branding value of the name "Kodak" itself has to have value in the billions.
I am not selling a single share of this stock. Only adding on these dips. The end result here is going to surprise.
I hear what your saying. I'm not going to disagree with you regarding the auction. However, perhaps there is more interest in spending the money that kodak was seeking for the ip but for the whole enchilada. It matters not to us longs how Kodak gets out of deep water just as long as they do it and it is profitable for us.
While this seems to make sense, the fact that these movie studios renegotiated with Kodak through 2015 (I believe), seems indicative of the fact that the movie industry disagree with this sentiment.
The point about the excel plan made me happy
The point about the international value of the Kodak trademark has to be one of the most obvious but also most overlooked asset they have.
You don't think someone would love to acquire them relatively cheap and own the KODAK name all over the world?