Annual Loss
Kodak, headed for its sixth annual loss in the past seven years, tried to sell more than 1,100 digital-imaging patents and pursued royalties to fund a shift to modern commercial and consumer digital printers.
Kodak's cash and equivalents fell to $862 million at the end of its third quarter from $1.4 billion a year earlier. The company is scheduled to report fourth-quarter results Jan. 26.
Kodak's revenue has fallen by half since 2005 to $7.2 billion last year, with further declines predicted this year and next after film and photofinishing unit sales sank by 14 percent in the second quarter. The company's losses since 2008 exceeded $1.76 billion.
Kodak's $250 million of 7.25 percent senior unsecured notes due in November 2013 fell 3.5 cents to 29.5 cents on the dollar as of 10:06 a.m. In New York, according to Trace, the bond price reporting system of the Financial Industry Regulatory Authority. The notes fell as low as 27 cents today and have plunged from 100 cents on the dollar, or face value, in April and 48.5 cents in November.
Creditors
The Bank of New York Mellon Corp. is listed as Kodak's biggest unsecured creditor as trustee for about $670 million of unsecured notes. Other unsecured creditors include Sony Studios, which is owed $16.7 million, Warner Brothers, with $14.2 million, and Alcoa Inc., with $2.8 million.
Bank of New York Mellon is also listed as the biggest secured creditor with a claim of $776 million, backed by all of Kodak's U.S. assets except for those exempted in a 1988 agreement, according to the filing.
Perez, a former Hewlett-Packard executive who took charge at Kodak in 2005, tried to rescue the brand by cutting costs and winning shelf space for inkjet printers at Wal-Mart Stores Inc. and Staples Inc. He pushed its commercial digital printers into publishing and packaging, touting their flexibility over old- school printing plates.
Too Late