Kodak switches advisors in struggle to avoid bankruptcy
Photography company Kodak has switched legal advisors in the middle of its struggle to avoid bankruptcy, trading in Jones Day’s restructuring practice in favour Sullivan & Cromwell. The company, which hired Jones Day earlier this year, made the switch during the past few weeks for reasons that remain unclear.
This article from the Wall Street Journal points out that the shift could be read as indicative of the troubled company’s strategy, since Sullivan & Cromwell has particular expertise in restructuring trasnsactions outside of bankruptcy court, while Jones Day specializes guiding troubled firms through bankruptcy proceedings.
Of course, Sullivan’s advisory role does not preclude a bankruptcy in the future if Kodak runs out of other options, and the law firm has considerable experience in guiding companies through the process. For now, Kodak is trying to sell assets to shore up its cash position, and Chief Executive Antonio Perez maintains Kodak will return to profitability in 2012.
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