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Polaroid may file bankruptcy
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October 10, 2001: 6:58 a.m. ET
Reports say Polaroid filing could come Wednesday and could spur sale.
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NEW YORK (CNNmoney) - Polaroid Corp. is expected to file for bankruptcy court protection as soon as Wednesday, according to published reports.
Wire service Reuters and the Wall Street Journal both reported the possibility of a bankruptcy filing, and both quoted company spokespeople having no comment on the report.
The Journal's report quoting unnamed people familiar with the matter, said that the company is under pressure from bond holders. The company admitted on July 11 it would miss interest payments on bonds and that it was exploring a merger or sale of the company. The Journal's report said a filing for protection under chapter 11 of the bankruptcy code, which allows for continued operations, could facilitate the sale of the company, either in pieces or as a whole entity.
"There has been a lot of acquisition interest in Polaroid," the paper quoted Henry Miller, the vice chairman of Polaroid's financial advisor, Dresdner Kleinwort Wasserstein. "There is no reason to believe that the filing of Chapter 11 would deter these potential purchasers or investors from proceeding. Indeed, it is often the case that Chapter 11 enhances the prospect for sale."
The company has been hit hard by the growth of digital photography, which has lessened the demand for its core instant cameras and film.
The Reuters report quoted market rumors of a bankruptcy filing as the reason for the latest drop in the value of the stock. Shares of Polaroid (PRD: Research, Estimates) lost 15 cents, or 35 percent of its value, to fall to 28 cents in trading Tuesday. 
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