Kodak is reported to be nearing bankruptcy, as it struggles to cope with the effects of the shift from film to digital.

The 131-year-old manufacturer of 16mm and 35mm film is attempting to sell off some of its patent portfolio and could avoid Chapter 11 bankruptcy if it succeeds, according to a Wall Street Journal report.

Ten years ago the company’s shares were priced at $40, but this week they slumped to a low of 40 cents, prompting ratings agency Moody’s to downgrade Kodak’s debt rating to a low CAA3 and warn of “a heightened probability of a bankruptcy over the near term.”

Earlier this week, the company was given six months by the New York Stock Exchange to lift its share price above $1 - or face delisting from the stock exchange.

Kodak is set to release its fourth-quarter 2011 financial results on 26 January.