Photography giant facing bankruptcy, shares plunge

Wednesday, July 11, 2001 | 10:42 a.m.

BOSTON -- Polaroid Corp., facing the imminent expiration of a large line of credit, is seriously considering a voluntary bankruptcy filing to protect it from creditors, a published report said.

Shares of Polaroid fell 37 percent on the news.

The Wall Street Journal, citing people familiar with the discussion, reported today that the company is considering a so-called prepackaged bankruptcy filing in which the company and creditors develop a plan to rework debt, then submit the plan to a bankruptcy court.

Other options include selling more of the company, but Polaroid has already sold off real estate assets, suspended its dividend and gone through two restructurings that cut its work force by 35 percent in the last year.

Polaroid spokesman Skip Colcord declined to comment on the Journal report.

"It's speculation and we don't ever comment on speculation," he said.

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