Eastman Kodak has said it has "no intention of filing for bankruptcy".
The struggling US camera and printing group's comments came after it confirmed it had hired a law firm well-known for handling bankruptcy protection cases, Jones Day.
Kodak said it was "not unusual for a company in transformation to explore all options".
Shares in the firm fell 54% on Friday as fears persist about its future. It has not made a profit since 2007.
Kodak, synonymous with film photography for more than 100 years, has struggled to adapt to the digital age.
Last week it announced plans to borrow $160m (£103m) for "general corporate purposes".
Kodak is now continuing to explore a sale of its digital imaging patents, worth an estimated $2bn.
Mark Kaufman, an analyst at Rafferty Capital Markets, said: "I don't believe bankruptcy is inevitable.
"This is a pretty valuable portfolio, they should get a good price.
"They need to get this [sale] out of the way. They need to sell this portfolio, raise some type of cash."
The company currently has a market value of $210m. This compares with $31bn at its height in February 1997.