Kodak shares plunge as bankruptcy fears escalate

September 30, 2011 - 3:35 PM

ROCHESTER, N.Y. (AP) — Investors dumped Eastman Kodak's stock amid fears that the photography pioneer is headed toward bankruptcy.

The Wall Street Journal rattled Kodak's already jittery shareholders with a report that the company has hired Jones Day, a law firm that dispenses advice on bankruptcies and other restructuring alternatives.

Kodak didn't immediately respond to a request for comment.

Friday's news followed a Kodak disclosure earlier this week that the company was borrowing $160 million from its revolving credit line. That convinced some investors that Kodak is running out of cash as it scrambles to adapt to the age of digital imagery.

Kodak shares lost more than half their value Friday, plunging 87 cents to 82 cents in afternoon trading. The selling was so intense that trading was temporarily halted at one point.