Eastman Kodak Co., a company with a history spanning over 130 years, has announced that there is “substantial doubt” about its ability to continue operating. The company, based in Rochester, New York, may struggle to meet its upcoming debt obligations, leading to a 13% drop in its stock price in early trading on Tuesday (August 12).
Kodak revealed in a regulatory filing that it has debt due within the next 12 months but lacks the committed financing or available liquidity to meet these obligations. As of June 30, Kodak had $155 million in cash and cash equivalents, with $70 million of that held in the United States.
Kodak’s Chief Financial Officer, David Bullwinkle, stated that the company expects to have a plan by Friday to satisfy its obligations to pension plan participants, with the reversion process anticipated to be completed by December.
Last year, Kodak decided to end its retirement income plan to reduce its debt.
Founded by George Eastman in 1880, Kodak was once a global leader in photography, known for its Brownie and Instamatic cameras. However, the company faced challenges from Japanese competitors and the shift from film to digital technology. Kodak filed for bankruptcy protection in 2012 and emerged a year later, focusing on commercial and packaging printing.
Currently, Kodak is nearing the completion of a manufacturing plant for regulated pharmaceutical products, with production expected to start later this year.
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