The following is excerpted from an October 7, 2011 article published by Businessweek:
Eastman Kodak Co.'s plan to sell patents is gaining traction with bond investors after derivatives last month suggested a 97 percent chance the 131-year-old camera maker would fail within five years.
The implied five-year default probability on Kodak was 73 percent on Sept. 2, according to data provider CMA, which compiles prices in the privately negotiated market. The Rochester, New York-based company's $250 million of 7.25 percent debt due November 2013 yielded 14.7 percent on Aug. 31 after jumping to as high as 19.8 percent on Aug. 10.
Kodak, headed for its sixth annual loss in seven years, is following Motorola Mobility Holdings Inc. and Nortel Networks Corp. in marketing patents as the U.S. International Trade Commission delays a ruling on the company's attempts to win $1 billion in licensing fees for image-preview technology used in cameras. Chief Executive Officer Antonio Perez said Aug. 29 that the company has signed confidentiality agreements with potential buyers of more than 1,000 Kodak patents.
Read the full article here.