Eastman Kodak Late in Board Resignation Announcement

Eastman Kodak (NYSE: EK) has the right to delay the announcement of certain events under SEC regulations. It did so when it disclosed today that two of its board members resigned on December 21. That hardly helps Kodak’s reputation for burying bad news as long as possible.

The company reported in an 8-K that:

On December 21, 2011, Adam H. Clammer and Herald Y. Chen notified Eastman Kodak Company’s Board of Directors of their resignations from the Board.

The two joined the board as part of a financing by KKR (NYSE: KKR). Each of the former directors is a member of the KKR management team. KKR put $300 million into Kodak in 2009 as part of a financing via senior secured notes.

Kodak was accused of misleading investors when it unexpectedly drew down on a credit line in September. Kodak said earlier in the year that it believed it had adequate capital for the remainder of 2011. Chris Whitmore, an analyst at Deutsche Bank Securities, said at the time, “Most people didn’t expect them to be drawing down their credit facility at this point.”

Kodak shares trade at $.69, down from a 52-week high of $5.85, on concerns that it will not be able to monetize its patent portfolio as expected, and an ongoing risk of bankruptcy.

Douglas A. McIntyre