Approximately $30 million of Polaroid's bank debt traded in the low 80s over the week after the company received a covenant waiver from its bank group. Dealers said the debt has traded in the low 80s for a while and that there were no dramatic swings. Some noted the company's best hope is to be sold, while others are skeptical that it will happen. "The worst case is that they go on and try to exist with no burning cash," a dealer said. "The numbers are coming in worse. [The market] is hoping the company does the right thing, being it sells itself. Either that or it figures out a way to pay off banks instead of trying to extend itself." Polaroid is based in Cambridge, Mass. Calls to a spokeswoman were not returned.
Polaroid's claim to fame was the picture that came to life before your eyes. In the age of digital film and camcorders, the fancy feature doesn't dazzle like it used to. "Big deal. With digital, we don't need to go to the photo mat," said a dealer, adding that the big picture for the company is fading. A spokesman said that Polaroid is considering sale of the company, asset sales, or a strategic merger. He said the company has income for years. "Millions of Polaroid cameras were sold over the last 30 years, and most of them are still in use," he said.