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Companies court Kodak - it's ripe for the picking
Here's why everyone wants it
25 Jan 2012 19:22 | by Paul Taylor in Lisbon | Filed in Mobile Kodak Smartphone
0 Comments .
The failing Eastman Kodak company isn't failing as much as you'd expect. In fact, it's having a Kodak moment.
It is sitting on a patent treasure trove of over 1,100 patents wildly valued, by at least one expert, at over $3 billion and has cunningly positioned itself for a quick, easy sale.
Just a week before filing for bankruptcy protection with the Southern District of New York, the company fired off another salvo of patent infringement suits against Apple (four patents) and HTC (five patents), adding an interesting twist to the on-going mobile patent wars. The more it becomes caught up in the crossfire, the more attractive it will become to potential buyers.
¦Optimise hardware, software and services, makes you smarter and faster
Ads by TechClicksEastman Kodak today is business as usual, only under the watchful eye of the Federal government, in an attempt to pull itself together and for the sake of its investors and employees, survive.
A recent reorganisation of the business boosted investor confidence while the company was still on the stock market, but was quickly superseded by the company’s Chapter 11 filing.
While it is true that, as Antonio Perez, CEO of Kodak put it, one of the reasons the company is in bad shape is that patent infringers have enacted stalling tactics in court, hoping for the collapse of Kodak before legal proceedings came to an end.
In fact, the company has relied on licensing as a regular source of income, especially as its products have failed to make a hit. In the end, it cannot collect and with Kodak’s situation there are talks that cases may simply stall in court. Kodak looks increasingly like a victim of big business... or is it?
The timing of both the restructuring, Chapter 11 filing and new lawsuits may have been cherry-picked to increase third-party interest in the company.
“The companies defending themselves against Kodak might ask the courts to stay all pending cases, but generally, bankruptcy does not prevent a company from enforcing its intellectual property rights”, Florian Mueller, IP expert, tells TechEye.
In all likelihood, court proceedings will continue even as the company struggles. Both the Kodak and the federal authorities will pursue sources of revenue, including damages awarded in court from successful litigation. Not only that, but a buyer will wipe its slate clean and pursue its adversaries in the mobile business.
In the course of today’s Mobile Patent Wars, everyone is a suitor, and everyone stands to make a killing out of Kodak’s demise. Buying the vast (1100+) patent portfolio, that matches the smartphone market so well, would be a Godsend to any of Microsoft, Samsung, LG, Apple or even Google, literally switching round the tables.
“Digital photography is part of the standard functionality of a modern-day smartphone, and increasingly common in tablet computers. Key patents on digital imaging could have some strategic value in the ongoing wireless patent wars”, added Mueller.
You can’t really imagine your smartphone without a camera, and most likely if you have one, then the odds are it exists under a Kodak licence of some sort.
The result is that the underdog here is being very coy about what happens next. Restructuring the company and a potential lawsuit bonanza against patent infringers will immediately attract buyers homing in for the opportunity to get one up on their adversaries or, maybe even for the first time, taking lead in a business that has been under the thumb of Apple and Google.
Someone will snap up Kodak soon, very soon
Read more: http://news.techeye.net/mobile/companies-court-kodak-its-ripe-for-the-picking#ixzz1kW6fjUia
Thats because we're on the Pinks
Nothing is pretty on the pinks
Going into earnings,Would be nice to finish at HOD
Google Brings Juniper Lawyer In-House to Handle Patent Strategy
Could it be ????
http://www.law.com/jsp/cc/PubArticleCC.jsp?id=1327242624917&Google_Brings_Juniper_Lawyer_InHouse_to_Handle_Patent_Strategy
Im sure Citi looked into this
They wouldn't have laid out 900M with doing their DD, IMO someone is already lined up, Otherwise Citi wouldn't have been involved
There was a conflict of interest, Nothing more
"I don't think there was a specific falling out," said Mike Darland of turnaround consulting firm CRG Partners and a former Polaroid executive. "My first instinct was that FTI was conflicted with creditors or lenders or bondholders and it may not have been discovered initially."
Rochester, N.Y – Kodak CEO Antonio Perez has remained optimistic about the company’s prospects, even in the face of bankruptcy.
"We are all excited about our future," he said in a video message to the public on the day Kodak filed for Chapter 11.
The continued assurances that Kodak’s transformation is just around the corner has led to a loss of credibility, say some analysts.
"For at least the year, we’ve seen overly exuberant statements come out of 343 State Street, things like by 2012 Kodak will be a profitable and sustainable company," said George Conboy of Brighton Securities. "We know that’s not going to happen."
Perez arrived in 2003 at Kodak from Hewlett Packard. He was elevated to CEO and chairman in 2005. During his years at Kodak, sales fell from $13 billion to $6 billion. The worldwide workforce was cut by 45,000.
Patrick Cowan lost his job at Kodak last year after 30 years working at the company.
"The ship sunk under his guidance and whoever’s the captain of the ship…needs to step up and take responsibility," Cowan said.
Perez inherited a company struggling to make the switch from film to digital. Kodak was already on the decline. Analysts say he did a good job identifying and monetizing patents. But his digital printing strategy took longer than expected to execute and become profitable. Meantime, Kodak turned away from heavy investment in consumer products.
"He came into a pretty bad situation and it’s clear he didn’t execute well," said investment analyst Christopher Carosa. "The bottom line is the bottom line in this business, in any business. The fact that his company is filing for bankruptcy is telling you he failed to achieve the goals he should have achieved."
Kodak has not made Perez available for public comment. The Democrat and Chronicle called for him to address the media and talk about Kodak’s future.
A management team typically stays in place during a restructuring, said bankruptcy expert Lucien Morin, II. But creditors could apply to the court for a change in management.
Law 360 reported that bondholders raised objections in court Friday about Kodak’s line of credit, believing the company would burn through the cash.
"I think you will see bondholders and others in the bankruptcy asking for Mr. Perez’s resignation," said Conboy. "Time has come for him to go. He brought Kodak from being an iconic company to being in bankruptcy."
Kodak forecast its cash flow for the next 13 weeks in the presentation, saying it would have an ending operating cash balance of $336.3 million for the week ended April 6.
The company tried to sell a portfolio of more than 1,100 digital-imaging patents and pursued royalties to fund a shift to modern commercial and consumer digital printers.
The loan agreement for the Chapter 11 case requires filing a motion with the bankruptcy court by June 30 seeking approval of bidding procedures for the sale. The lenders must be given a draft reorganization plan by Jan. 15, 2013. The plan and disclosure statement must be filed by Feb. 15, 2013.
A group of noteholders objected to the financing request, saying in court papers there should be “significant restrictions” on Kodak’s ability to borrow and spend. Kodak initially sought approval to borrow as much as $700 million on an interim basis, according to court papers. It then agreed to reduce the amount.
To contact the reporter on this story: Kristen Haunss in New York at khaunss@bloomberg.net
To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net
Eastman Kodak Co. (EK), the photography pioneer that filed for court protection, outlined the interest rates it will pay for $950 million of debtor-in-possession financing.
The company will pay 3.25 percentage points more than the London interbank offered rate for a $250 million asset-based revolving line of credit, according to a lender presentation today on the company’s website. Kodak will pay 7.5 percentage points more than the benchmark for a $700 million term loan. The term loan has a 1 percent floor on Libor, according to the presentation.
Kodak won a bankruptcy judge’s approval on Jan. 19 to borrow as much as $650 million to support operations as it pursues a sale of patents. The Rochester, New York-based company will return to court for permission to borrow the full $950 million under its DIP financing agreement. Kodak needs “immediate access” to the funds to refinance debt, pay suppliers, and pay restructuring costs, it said in court papers.
Citigroup Inc. (C), the sole arranger of the loan, held a call with lenders at 2:30 p.m. in New York today to discuss the financing, according to a person familiar with the terms, who declined to be identified because the call wasn’t announced publicly.
The term loan will be sold at a discount of 97 cents to 97.5 cents on the dollar, according to the lender presentation.
Christopher Veronda, a Kodak spokesman, didn’t return a telephone call seeking comment.
Cash-Flow Forecast
The company said earlier today it was proposing to pay 8.5 percentage points more than Libor for the term loan, according to a filing with the Securities and Exchange Commission. The rate was cut in part because of interest in the loan, the person said.
Proceeds of its loan will go to pay its existing revolving loan, and to fund operations as the company reorganizes, focusing on its most valuable businesses, including document scanners and digital printing solutions, Kodak said in today’s slide presentation.
1M shares @.35 on the bid side
Kodak names james Masterharn as Chief Restructuring officer
Eastman Kodak Company Files Lender Presentation in Connection with Syndication of DIP FinancingLast update: 1/23/2012 2:45:00 PMROCHESTER, N.Y., Jan 23, 2012 (BUSINESS WIRE) -- Eastman Kodak Company (the "Company") (otb:EKDKQ.PK) today said that it has posted on its Company website and its reorganization information website slides from a Public Lender Presentation (the "Lender Presentation") in connection with the syndication to potential lenders of its previously-announced Debtor-In-Possession Credit Agreement dated as of January 20, 2012.
volume has slowed to a trickle
Could be a sign that the sellers who wanted out, ARE OUT
The problem is with low volume, A lot of games CAN be played , Hope not
Without some positive news, Kodak will be flat
Or down, And Im bullish on ekdkq
Red , There are amny examples of companys
Coming out of chapter 11 with shareholders intact
Sir , I will not tell you what
To do, Im a daytrader and buy and sell, I am in on my second trade here and I hope it'll go to the mid 50's,Im in at .30.
Amr went from .20 to 1.20 and then back down, Their balance sheet is 3 times worse then EK , Only you can make the decision to sell, Dont listen to anyone, Take no advice from a messege board, Everyone has an agenda.
I may be the only one on this board that
Thinks KODAK will get out of this with their shareholders, It will be a lot smaller company but it will continue, Time will tell
GM Had to cancel their stock, They
Took money from the Government and that was part of the deal
IMO EK still has value in the company.
This is not an AMR, where the debt is higher then the assets by 4.5B.
EK has debt of 6.5B assets of 5B, But they have the patents worth from 1.5B to 2,6B
Also you must look at how they're gonna pull out of this BK a leaner and meaner company.
For one, They are gonna have to sell the Patents in the range of 2B
They're gonna cut back on employees and employees benifits, also close all the parts of Kodak not making money and sell them off, Its not gonna look pretty, But thats how they're gonna make a go of it.
One way to reinvent Kodak is thru thin-film solar cells. which they alredy make.
http://ecogeek.org/component/content/article/3687
(( Kodak may be in the middle of some financial trouble -- it just filed for bankruptcy yesterday and has shut down almost all of its camera film production -- but they're looking at solar energy as a way to a fresh start. The camera and film maker is hoping to use its already existing manufacturing processes to produce thin-film solar cells.
Kodak is working with Natcore Technology to develop and produce flexible, thin-film solar cells made of nanotubes that could match the efficiency of conventional silicon cells. Thin-film cells haven't made as much of a splash in the market yet mainly because of the efficiency lag between them and silicon cells, but thin-film is catching up.
If Kodak can make a major improvement in efficiency, they have two major advantages compared to other manufacturers: cost and experience. Kodak could use its existing and proven film production equipment to produce the solar cells, potentially cutting costs in half.
It will likely be tricky transition for the company, but we'll be interested to see if Kodak can make this work and improve on the thin-film technology available today.))
For folks who think Kodak is finished, They're dead wrong, They will get by this and be a much smaller but stronger company.
looks like they shut down message board on yahoo
Seeking Alpha article from Yahoo
http://seekingalpha.com/article/283877-healthcare-providers-bearish-in-the-short-term-bullish-in-the-long-term
Seeking Alpha + Reuters, Deal Worth 100M
http://in.mobile.reuters.com/article/innovationNews/idINTRE75Q32E20110627?irpc=984
http://seekingalpha.com/news-article/134...
Shares of Icagen Inc. popped more than 150 percent in early trading Monday on news that the biotech is engaged in preliminary buyout discussions with long-time partner Pfizer Inc. (PFE)
Late Friday, Pfizer filed a Schedule 13-D revealing that, as part of its ongoing evaluation of its deal with Icagen, the big pharma is "evaluating the possibility of entering into a strategic transaction with Icagen . . . by means of a stock or asset acquisition or merger." A confidentiality agreement has been signed and due diligence is under way.
Icagen subsequently issued its own press release acknowledging that it is "currently engaged in preliminary discussions with Pfizer" but that no definitive agreement has been reached.
Despite the cautionary language, Icagen investors were stoked. Shares of the Research Triangle Park, N.C.-based biotech (NASDAQ:ICGN) popped to a new 52-week high on Monday and closed at $6.33, a gain of 163.8 percent, or $3.93, for the day.
Pfizer and Icagen signed a billion-dollar deal in 2007 for rights to Icagen's sodium ion channel modifiers in pain indications. The deal covered compounds targeting three specific ion channels, and Icagen stands to get up to $359 million in research, development, regulatory and commercialization milestones for each product, plus royalties. (See BioWorld Today, Aug. 15, 2007.)
The deal was extended in 2009 and again in 2010. Pfizer bought stock in Icagen as part of the deal and currently owns 1 .07 million shares about 14 percent of the biotech.
Late last year, Pfizer and Icagen said they had picked a compound targeting the sodium ion channel Nav1 .7 as their lead candidate for clinical studies. That brought $1 million to Icagen and sent the biotech's stock up 78.7 percent. (See BioWorld Today, Dec. 1 , 2010.)
Icagen needed the good news: The biotech had suffered several setbacks over the past few years including Johnson & Johnson bailing on a partnership after the failure of senicapoc in a Phase III sickle cell trial, Bristol-Myers Squibb Co. dropping work on an atrial fibrillation compound, a Phase II failure of senicapoc in asthma, and a clinical hold on epilepsy compound ICA-105665.
Pfizer needs some good news, too, particularly in its pain pipeline. Last year, the big pharma suspended a massive clinical program for anti-NGF antibody tanezumab in osteoarthritis pain. Pfizer was running some 19 clinical trials in upward of 9,000 patients at the time of the suspension. Last year's acquisition of King Pharmaceuticals Inc. went a long way toward filling the pain pipeline gap, but last week's receipt of another complete response letter for Remoxy (extended-release oxycodone) was another tough blow. (See BioWorld Today, June 25, 2010, Oct. 13, 2010, and June 27, 2011 .)
If Pfizer does acquire Icagen, it would get more than the pain program on which the two companies already collaborate.
Icagen recently made steps toward getting ICA-105665 back on track in epilepsy. The FDA removed the clinical hold on the drug, which previously met its primary endpoint in a Phase IIa study measuring its ability to reduce the photic-induced epileptiform EEG response in patients with epilepsy. (See BioWorld Today, March 17, 2010.)
More good news: ICA-105665 is a KCNQ potassium channel agonist, and earlier this month the FDA approved Valeant Pharmaceuticals International Inc. and partner GlaxoSmithKline plc's epilepsy drug Potiga (ezogabine), which also acts at KCNQ ion channels and may help validate the approach. (See BioWorld Today, June 14, 2011.)
Earlier in its pipeline, Icagen is in preclinical development with compounds targeting ion channels associated with inflammatory disease.
(c) 2011 Thomson BioWorld, All Rights Reserved.
If you think that MM's dont work with sellers
You are going thru life with blinders on, and BTW its not illegal.
But I do wish you well and hope you make a ton of $$$$$
Good Luck
Not IMO, Happens all the time
A deal is worked out with the MM to take it up and hold it there till they dump what they can.
Looks like a note holder is cashing out
No Position
Gold Has Been Warning Folks Here For A Long Time.
Seems he may have just been proven right
Youku & Apple May Be Teaming up...
http://technode.com/2011/05/06/rumor-you...
Check Out FLNTF, Lithium Stocks Hottest Sector Going
Rare Earth Elements are on FIRE.
The chance here for a 5 - 10 bagger is there in FLNTF
Just check out LEXG or LTUM and look at what these 2 have done and you can get an Idea of what First Lithium Resources (FLNTF) can do.
LEXG Has gone from .20 to 10.50 on news of a property they acquired from FLNTF Via option out 10.5K of their 90K hectares of this property to LEXG.
It would be logical that First Lithium, not LEXG is the true play here if you're going to speculate that Valleywood holds the motherlode. However FLNTF trades at a mere 13 cents with the same amount of shares outstanding as LEXG.
http://caps.fool.com/Blogs/my-rebuttal-to-quotlexgob/586216
Heres some DD for you
http://caps.fool.com/Blogs/my-rebuttal-to-quotlexgob/586216
There are approximately 56,000,000 shares OS.
And we cant seem to move, Looks like we'll need a news event to get us started
Re: yahoo board, Theres an 8k out
FLNTF Gonna Run This WEEK
Heres some DD on Lithium Stocks, All these stock have made a BIG MOVE So far, FLNTF IMO May be getting ready to make that big move also, All they need is for the company to release some news.
http://caps.fool.com/Blogs/my-rebuttal-to-quotlexgob/586216
Lithium Stocks, The Hottest Sector FLNTF
Is IMO the sleeper of the bunch, LEXG got their start in Lithium by Getting 10% of the fields that First Lithium leased to them, First Lithium still has control of 90% plus other Interest,
If LEXG Can go from .20 to 10.50 in 4 days so can FLNTF
Somethings Coming Boyz
Somethings up, Keep your eyes open, Dont leave the computer
I dont understand, FLNTF Should be the lithium Play at this price, Yet
It gets little action.
And Dont tell me its because it has a 5 letter symbol, That dont fly.
Where are all the folks that were
Warning investors to stay away from LEXG, As if there were'nt even a trade left.
Sad
Even the skeptics here would have to say
That they were even surprised with todays action.
No matter what else happens today, LEXG Has held up well so far.
And this company just (( MAY )) Be for real
Ahhhhhhhhhhhh The trick is Knowing How to trade.
And making money
(( Does it matter the pr pump is located two blocks from Walsh house. ))
Nope, I do this to make money, Not to make commentary.
Anyone who invest in these stocks should know what they're getting in to before they buy, If they dont shame on them.
Everyone has an agenda, My agenda was to make money on LEXG, And that done, I am looking for my next entry point.
How You Doing ???