Kodak Warns It May Shut Down, but Says It Can Still Pay Debt

The more than 130-year-old Eastman Kodak Co. is warning about its ability to continue operations but says it remains confident in meeting upcoming debt obligations, Michelle Chapman reported for the Associated Press (AP).

The Rochester, New York-based company reported $155 million in cash and cash equivalents as of June 30, with $70 million held in the U.S. (Photo: Thomas Belknap Wikimedia Commons)

“Kodak has debt coming due within 12 months and does not have committed financing or available liquidity to meet such debt obligations if they were to become due in accordance with their current terms,” the company said in a regulatory filing.

“These conditions raise substantial doubt about Kodak’s ability to continue as a going concern.”

The Rochester, New York-based company reported $155 million in cash and cash equivalents as of June 30, with $70 million held in the U.S. Kodak added that the going-concern language was largely a required disclosure because of the timing of its debt maturities.

“Kodak is confident it will be able to pay off a significant portion of its term loan well before it becomes due, and amend, extend, or refinance our remaining debt and/or preferred stock obligations,” the company said.

Last year, Kodak ended its retirement income plan in order to pay down debt, according to The Wall Street Journal. Chief Financial Officer David Bullwinkle said Monday that the company expects to know by Friday how it will satisfy obligations to all pension plan participants, with the reversion process to be completed by December.