Rumors of Kodak's bankruptcy deemed misleading; company responds.
Kodak Denies Imminent Bankruptcy, Expresses Confidence in Financial Position
In a strongly worded statement, Kodak has clarified its financial position, denying rumors of impending bankruptcy, ceasing operations, or seeking bankruptcy protection. The company, which recently reported a net loss in Q2 2025, is actively managing its liabilities and remains confident in its ability to meet obligations without bankruptcy in the near term.
The company's focus is on reducing debt while investing in long-term business growth. Kodak's CFO and CEO have highlighted ongoing efforts to strengthen the balance sheet, improve liquidity through equity offerings, and complete the pension plan reversion.
Kodak's Q2 2025 earnings report showed a GAAP net loss of $26 million compared to net income the previous year, with revenues slightly down and operational EBITDA decreased due to higher costs and lower volumes. The company’s cash balance declined by $46 million in the first half of the year due primarily to capital expenditures and working capital changes.
In its SEC filings, Kodak did state there was “substantial doubt about the company’s ability to continue as a going concern” due to upcoming debt obligations. However, this technical requirement under accounting rules should not be interpreted as an indication of imminent financial distress.
Kodak plans to use approximately $300 million in cash from the termination of its U.S. pension plan by year-end 2025 to repay a significant portion of its $477 million term debt. The company expects to receive approximately $500 million in assets in December 2025 as part of the pension fund transaction. Kodak wants to extend, refinance, or repay the remaining debt and preferred stock obligations.
The company has no intention of using funds from the pension transaction to finance day-to-day operations. Kodak's operations remain stable and self-sustaining. By early next year, after planned transactions are completed, Kodak expects to hold its strongest balance sheet in years and be "virtually net debt free."
Kodak is optimistic about its future and confident in its plan to meet all its obligations. The company will continue to meet its obligations to all pension fund participants. Media reports are misleading and omit critical context, according to Kodak. The company states that it is committed to transparency and will continue to provide updates as necessary.
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