Kodak is facing its most serious financial crisis in over a decade. Still, it is actively pursuing a path to solvency using an expected pension fund payout and potential debt restructuring. Hopefully, the 145-year-old company won’t be taking its final bow.
Kodak executives flagged nearly $500 million in debt due within the next year, with no committed financing or liquidity to cover those obligations. In regulatory filings, Kodak warned these conditions raise “substantial doubt” about its ability to continue operating as a going concern.
Not Shutting Down
Since Kodak filed their second quarter earnings report, they wanted to make it clear they are not filing for bankruptcy or shutting down. Below is a statement from Kodak.
Media reports that Kodak is ceasing operations, going out of business, or filing for bankruptcy are inaccurate and reflect a fundamental misunderstanding of a recent technical disclosure the Company made to the SEC in its recently filed second quarter earnings report. These articles are misleading and missing critical context, and we’d like to set the record straight.
Kodak
- Kodak has no plans to cease operations, go out of business, or file for bankruptcy protection.
- To the contrary, Kodak is confident it will repay, extend, or refinance its debt and preferred stock on, or before, its due date.
- When the transactions we have planned are completed, which is expected to be early next year, Kodak will have a stronger balance sheet than we have had in years and will be virtually net debt free.
- The “going concern disclosure” is a technical report that is required by accounting rules.
- We will continue to meet our obligations to all pension fund participants.
In a lot of ways, it’s incredible Kodak has survived as long as it has with digital cameras and cinema cameras being the main drivers over film. Yes, Kodak still makes film stock such as Vision3 color negative, print and intermediate films, Ektachrome reversal film, and black-and-white stock for filmmakers, but this is a tiny market that won’t support a large company. Other products in Kodak’s lineup are Advanced Materials & Chemicals, such as high-tech materials for industries including coatings, printing plates, pharmaceuticals, flexible electronics, batteries, solar devices, and diagnostics.
The company also maintains a foothold in commercial printing—supplying inkjet presses, Flexcel imaging systems, packaging materials, and lithographic printing plates. On the brand licensing side, Kodak-branded digital cameras, batteries, and other consumer goods are manufactured by partners under license.
KODAK Super 8 Camera
The Kodak Super 8 camera was initially announced in 2016, but experienced delays. It was finally released in limited quantities in December 2023. The camera combines classic Super 8 film with modern digital features. The Kodak Super 8 camera is expensive at $5495 and is a niche camera for enthusiasts as opposed to a professional tool. I doubt it made a difference and is likely a loss for Kodak.
With so much history, you want to cheer for them to survive. They have diversified into other segments, but it appears these segments are not generating sufficient income at this time, and restructuring is necessary.
