Eastman Kodak is approved to auction patents; sale starts Aug. 8

By Sahara Marte

New York, July 2 - Eastman Kodak Co. received approval to auction its 1,100 patents at a hearing in the U.S. Bankruptcy Court of the Southern District of New York.

But the hearing did not settle ownership of the 13 patents claimed by Apple, Inc. and FlashPoint Technologies.

Judge Allan Gropper approved Eastman Kodak's request for an auction on Aug. 8.

The company and creditors agreed that Eastman Kodak will be able to set up sale negotiations with the best bids two weeks after the bid deadline. Losing bidders do not have to be notified and will not be announced, said Eastman Kodak's attorney, Andrew Dietderich, partner of Sullivan & Cromwell LLP.

"It has to be reasonable," he added when asked about the limitations of the auction.

The company was able to settle the majority of objections through negotiations. Before the hearing, 24 of the creditors' objections had been resolved.

"I thank the you for a great deal of cooperation," judge Gropper said after negotiations had taken place.

Kodak is a Rochester, N.Y.-based imaging technology products and services provider to the photographic and graphic communications markets. The company filed for bankruptcy on Jan. 19 in the U.S. Bankruptcy Court for the Southern District of New York. Its Chapter 11 case number is 12-10202.

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