Polaroid debt traded up to 80 from the 65 range as a debt payment comes due at the end of the month. Market players anticipate a strong recovery on the value of the company's assets. Early last week the company announced its plans to sell the assets of its Identification Systems Business Division to Digimarc for $56.5 million in cash. This is part of a company strategy to sell assets that are part of its non-core business. The Cambridge, Mass.-based company supplies instant photographic cameras and films. Calls to Bill Flaherty, cfo, were not returned. Spokesman Skip Colcord declined to comment.
In mid-October the company filed for bankruptcy and is undergoing a financial restructuring. The company received $50 million in debtor-in-possession financing from a bank group led by J.P. Morgan. Polaroid also announced that the company and its lenders have agreed to continue exploring the possible sale of all or parts of the company.