In the world of poor leadership and strategy, you have to love the irony that exists in the world of international finance on the last day of the quarter. The top headline from Yahoo! Finance is really from CNN Money titled “Greece Default Chances Up As Eurozone Crisis Drags On.” This is on the same day that Eastman Kodak Co. (NYSE: EK) is witnessing a deathblow on reports of a restructuring heading its way.
The “leaked news” from the Wall Street Journal could have just as easily been noted as “Blue Horseshoe Hates Eastman Kodak.” The WSJ has reported “according to people familiar with the situation” that Kodak has hired Jones Day to assist in restructuring efforts. On last look, Eastman Kodak shares were down over 50% today and not just under $1.00… The stock was under $0.80.
These are two dire train wrecks that have been in the works for some time for very different reasons. The death of Kodak actually goes back farther than Greece’s ‘current’ woes, but Greece’s systemic issues have been building up to this point are as old as the hills.
How anyone at Kodak has allowed Antonio Perez to continue on the same strategy this long has been baffling. Maybe after the Kodak restructuring Mr. Perez could seek an E.U. regulatory position.
The fact that this “rumor” is happening on the last day of the quarter, and the worst market quarter in about three years, only adds to the irony.
Normally it might seem fair to include much more supporting data than questions and generalities when discussing the worst case scenarios for companies or countries. In these two issues, we simply ask “What is the point and what more needs to be said?”
In the world today, even a partial restructuring can generally be considered a default by the credit ratings agencies. Here is an anonymous poll for our readers so you can make the vote…
JON C. OGG