Kodak has extended the deadline for its patent auction following reports that bids for the portfolio had come in well below estimates.

The Rochester, NY manufacturer was due to announce the winner of its auction of a portfolio of more than 1,100 digital imaging patents yesterday (13 August).

However, instead of announcing the winner, Kodak said that it had agreed an extension to the patent auction, the outcome of which is likely to be key to its successful exit from Chapter 11.

In a statement the company said: "Kodak and its creditors have agreed to extend the timeline for announcing the outcome of the patent auction in light of continuing discussions with bidders.

"The auction, which is a complex and dynamic process, is ongoing. Like all participants, Kodak is still bound by the court order on confidentiality, and cannot comment further at this time."

Kodak has previously said the patent portfolio could be worth as much as $2.6bn (￡1.7bn); however, a report in the Wall Street Journal last Friday (10 August) claimed that all bids thus far had been "significantly below $500m", with tech giants Apple and Google reportedly submitting bids in the $150m-250m range.

Kodak would not reveal how long the extension is likely to last, although patent lawyers have estimated it is only likely to continue for a matter of days.

The proceeds from the eventual sale will first go to repay the banks including Citigroup that provided Kodak with its $950m debtor-in-possession facility, of which some $700m has been drawn and a further $114m issued in letters of credit.