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

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.