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Kodak Says Debt Obligations Threaten Company's Survival 133 Years After Its Founding
Kodak faces $500 million debt and recent $26 million quarterly loss, raising doubts about its survival without debt restructuring or new financing, the company warned investors.
- Kodak disclosed on Monday that it faces about $500 million in debt coming due over the next year, without secured financing to fulfill these repayment requirements.
- This financial pressure follows Kodak filing for bankruptcy in 2012 and multiple reinventions including entering commercial printing and pharmaceuticals.
- The company posted a net loss of $26 million in the most recent quarter, spent $46 million since the previous year, and currently holds $155 million in cash, primarily outside the United States.
- Kodak’s shares slid 21% to $5.43 after management expressed "substantial doubt" about continuing as a going concern without debt repayment or refinancing.
- These warnings imply Kodak’s survival depends on securing new funding or restructuring amidst ongoing industry challenges and an uncertain business environment.
23 Articles
23 Articles
The group cannot honour a 500 million loan and has already suspended payments of pension plans
Why a once-giant camera company may soon cease operations
Eastman Kodak, the 133-year-old photography company, is warning investors that it might not survive much longer.In its earnings report earlier this week, the company warned that it doesn't have "committed financing or available liquidity" to pay its roughly $500 million (AUD$763 million) in upcoming debt obligations."These conditions raise substantial doubt about the company's ability to continue as a going concern," Kodak said in a filing.READ …
Eastman Kodak, the major U.S. photographic equipment retailer, has told investors that it may not survive much longer and may have to liquidate its 133-year-old business.
The historic US camera company founded at the end of the 1980s warns investors: "There is no liquidity available to reduce debt by USD 500 million"
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