Kodak refutes shutdown rumors, says it’s confident of overcoming $470 million debt

Kodak

Kodak, the American company that once brought photography into millions of homes, has clarified that it has no plans to shut down, go out of business, or file for bankruptcy. The statement comes after several reports suggested the 130-year-old brand was on the brink of collapse due to its $470 million debt.

The confusion stemmed from Kodak’s latest quarterly earnings report and a “going concern disclosure” it filed with the U.S. Securities and Exchange Commission on Monday, August 11. The disclosure raised doubts about the company’s ability to meet near-term debt obligations, leading to speculation about its survival.

However, Kodak says the concerns are being misinterpreted. In a strongly worded statement, the company said:

--It has no plans to cease operations or file for bankruptcy protection.
--It is confident it will repay, extend, or refinance its debt and preferred stock before they come due.
--Once planned transactions are completed early next year, Kodak expects to have its strongest balance sheet in years and be virtually net debt-free.
--Pension fund participants will continue to receive their benefits without disruption.

In its latest financial filing, Kodak reported revenue of $263 million for the quarter ending June 30, down slightly from last year. Gross profit dropped 12%, and cash reserves fell to $155 million. The company had earlier said it would cut pension costs as part of efforts to manage debt, but has now emphasized that obligations will still be met.

CEO Jim Continenza previously noted that tariffs had little impact on the business, as most products — including printing plates, inkjet presses, film, and pharmaceutical ingredients — are made in the U.S. Looking ahead, Kodak plans to strengthen its advanced chemicals and materials division to drive growth.

“For the second half of the year, we will continue to focus on reducing costs today and converting our investments into long-term growth,” said chief financial officer David Bullwinkle. He added that the company expects to finalize its debt refinancing plans soon.

While questions remain about Kodak’s long-term future, the company insists it is far from shutting down. Instead, it is betting on restructuring its finances and moving forward with renewed confidence.