Kodak vigorously denies allegations of imminent closure.
Kodak Denies Reports of Financial Troubles and Upcoming Bankruptcy
The Eastman Kodak Company has issued a denial, stating that it is not ceasing operations, going out of business, or filing for bankruptcy. This denial comes in response to reports earlier this week that suggested the company would be unable to pay its upcoming debt obligations, which amount to roughly $500 million.
According to Kodak, it is optimistic about its future and expects to have a stronger balance sheet than it has had in years. The company plans to address its financial obligations, with the aim of being virtually net debt-free by early next year.
As of mid-2025, Kodak held about $155 million in cash but faced nearly $600 million in short-term obligations, notably $477 million in term debt and $100 million in preferred stock due within roughly a year. To address this, Kodak plans to complete the reversion of its Kodak Retirement Income Plan (KRIP) pension fund by December 2025, which is expected to provide approximately $500 million of assets, including $300 million in cash. This cash will be used primarily to repay term debt, as per loan agreements.
The company intends to use the pension cash to pay down its term loans before their maturity in May 2026, then amend, extend, or refinance remaining debts and preferred stock obligations. After this transaction, Kodak expects to significantly strengthen its balance sheet and be nearly free of net debt, improving liquidity and lowering interest costs.
However, it's important to note that Kodak's June 30, 2025 financial filing included a "going concern" warning because the pension fund reversion was not entirely within Kodak’s control and not “probable” under U.S. GAAP, even though management is confident about the plan.
In a recent technical disclosure to the SEC, Kodak stated that there was a "fundamental misunderstanding" regarding the disclosure. The company wants to set the record straight regarding its financial situation and has said that articles about its financial situation are misleading and missing critical context.
Founded by George Eastman and Henry A Strong in 1892, The Eastman Kodak Company has faced financial challenges in recent years, but it remains committed to addressing these issues and securing a strong future.
The Eastman Kodak Company is optimistic about its future in the business realm, expecting to have a stronger balance sheet than it has had in years, as they plan to address their financial obligations and aim to be virtually net debt-free by early next year. Despite the financial troubles implied in certain reports, the company is taking active steps in the financial sector, such as the reversion of its Kodak Retirement Income Plan (KRIP) pension fund, to pay down its debts and improve liquidity.
