Eastman Kodak shares are down hard Friday afternoon after Bloomberg reported that the company is in advanced talks with Citigroup to provide the company with bankruptcy financing. The story, attributed to people familiar with the matter, says that Kodak could file Chapter 11 within weeks, after which it would hold an auction to sell off its patent portfolio.

The story says Kodak may seek $1 billion in debtor-in-possession financing.

The piece also says that Kodak is lining up a stalking horse bidder for the patent portfolio.

Kodak has been seeking to sell its portfolio of more than 1,100 digital patents to raise enough cash to stave off insolvency. The company meanwhile is pursuing patent infringement claims against Apple, Research In Motion and HTC.

Kodak shares in pre-market trading are down 13.2 cents, or 19.6%, to 54 cents.