Eastman Kodak shares have slumped 28% this afternoon as the company readies to file for bankruptcy, the Wall Street Journal reports.
Kodak is working to secure $1 billion in financing to continue operations, but faces insolvency if it is unable to find a lender this or next month.
During the last fiscal quarter, Kodak reported cash on hand fell to $862 million from $1.4 billion in September 2010. The firm had hoped seasonal sales would boost liquidity headed into the holidays.
However, the company continues to bleed money. Kodak reported a loss of $222 million, or -$0.83 a share, in November, while revenue fell 5% year-on-year to $1.5 billion.
Yesterday, the Rochester, New York, company announced that the New York Stock Exchange had issued a warning because shares were below required levels.
The company's stock currently trades around $0.50, and will be delisted if it does not trade higher than $1.00 over the coming half year.
"It is a 30 trading day average that triggers the rule," Rich Adamonis of the NYSE said. "They have 6 months to cure the issue or that can be extended if the regular annual meeting is after the 6 month mark and they acknowledge that they expect to seek a shareholder approved action at that meeting, such as a reverse split.
Kodak has a valuable library of some 1,100 patents that it hopes it could sell to sustain itself.
Christopher Veronda, a spokesperson for the company declined to comment.
"It's our long-standing policy not to comment on market rumors or speculation," he said. " On NYSE, we have a six-month grace period, and we will avail ourselves of this period."
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