Shares of Eastman Kodak crashed on Friday on rumours that the company may soon file for bankruptcy. This came after the Wall Street Journal reported Kodak had hired law firm Jones Day.
Responding to rumours, Kodak released this 102-word statement after the markets closed:
“Kodak is committed to meeting all of its obligations and has no intention of filing for bankruptcy. The company also continues to actively pursue its previously announced strategy to monetise its digital imaging patent portfolio. Kodak remains focused on meeting its commitments to customers and suppliers, and on delivering on its strategy to become a profitable, sustainable digital company.
“It is not unusual for a company in transformation to explore all options and to engage a variety of outside advisers, including financial and legal advisers. Jones Day is one of a number of advisers that Kodak is working with in that regard.”
However, Kodak investors should be warned: this is not a guarantee that Kodak won’t file for bankruptcy. Like all publicly-traded companies, Kodak attaches a lengthy disclaimer to the bottom of its statement:
Certain statements in this document may be forward-looking in nature, or “forward-looking statements” as defined in the United States Private Securities Litigation Reform Act of 1995. For example, references to the Company’s expectations regarding the following are forward-looking statements: revenue; revenue growth; gross margins; earnings; cash generation and usage; potential revenue, cash and earnings from intellectual property licensing; liquidity; bankruptcy; potential proceeds from asset sales.
Actual results may differ from those expressed or implied in forward-looking statements.