NEW YORK ― Hedge funds that have been in discussions with Eastman Kodak Co. to help shore up the company’s cash position, have cut the amount they are willing to finance, the Wall Street Journal reported on Sunday.
The 131-year old company has been in talks for new financing with a consortium of hedge funds including Cerberus Capital Management LP and Highbridge Capital Management LLC, the report said.
While discussions originally centered on a package of about $900 million, the hedge funds recently cut the amount they are willing to provide to somewhere between $600 million and $700 million, the WSJ said, citing people familiar with the matter.
The report said that might not be enough to meet the company’s needs.
Kodak has been trying to sell is portfolio of 1,100 digital patents since August with the help of investment bank Lazard Ltd.
While the company is looking at other means of raising cash, unless Kodak closes on the patent sale or gets a large enough amount of bridge financing in coming weeks, it could seek bankruptcy protection during the first few months of next year, the report said.
Kodak had $862 million in cash at the end of September, down from $1.4 billion a year earlier.