Kodak faces risk of going out of business
Why it matters: The iconic American company is famous for its film products but has more recently pursued different businesses, including specialty chemicals and commercial printing.
Driving the news: Kodak warned late Monday in an SEC filing that there's "substantial doubt about the Company's ability to continue as a going concern" — a warning that publicly traded companies are required to issue when their financials are deteriorating.
The company swung from a $25 million profit a year ago to a $26 million net loss in its most recent quarter — and it burned $46 million in cash, leaving it with $155 million.
"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 the filing.
Still, CEO Jim Continenza said "Kodak continued to make progress against our long-term plan despite the challenges of an uncertain business environment."
Threat level: Kodak said it had terminated its pension plan to save money to pay its debt.
"We expect to have a clear understanding by August 15 of how we will satisfy our obligations to all plan participants," the company said in a statement.
The impact: Kodak shares plunged 27% to $4.96 Tuesday morning.
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