Eastman Kodak Co., the 130-year-old photography pioneer, has issued a stark warning about its financial viability, stating there is 'substantial doubt' about its ability to continue operating. The company faces looming debt obligations that it may not be able to meet, triggering a 13 per cent drop in its share price on Tuesday.
In a regulatory filing, Kodak noted that it has debt coming due within 12 months and lacks the committed financing or liquidity to cover those obligations. As of June 30, the firm reported $155 million in cash and cash equivalents, with $70 million held in the US. The warning follows last year's termination of its retirement income plan, a move to reduce debt.
Chief Financial Officer David Bullwinkle stated that the company expects to clarify by Friday how it will satisfy obligations to pension plan participants, with the reversion process expected to be completed by December. Kodak previously filed for bankruptcy in 2012, emerging a year later as a smaller entity focused on commercial and packaging printing.
Founded by George Eastman in 1880, Kodak popularised photography with its Brownie and Instamatic cameras. However, it struggled against Japanese competition and the shift to digital technology. The company is now nearing completion of a plant to produce regulated pharmaceutical products, with production expected to start later this year.
