Latest news with #KodakCompany
Gizmodo
4 days ago
- Business
- Gizmodo
Kodak Says Reports of Its Eminent Demise Are Greatly Exaggerated
Fears have swirled that Kodak, one of the last large film companies in the world, may soon be shutting its doors. Those fears were spurred by a regulatory filing released Monday, in which the company spoke of its debt load and a lack of liquidity to pay it off. However, the company has since emerged to deny that it will be shutting down anytime soon. '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,' the company said in a press release published Thursday. 'These articles are misleading and missing critical context, and we'd like to set the record straight.' Monday's disclosure said that the company had 'debt coming due within twelve months' and that it did not 'have committed financing or available liquidity to meet such debt obligations if they were to become due in accordance with their current terms.' That debt payoff includes some $477 million in term debt, as well as $100 million of preferred stock outstanding, the company said. The company's plan to pay off that debt partially involves selling off its employees' pension plans. Democrat and Chronicle reports that, last November, the company announced a plan to sell $764.4 million in assets from its pension system. Some 35,000 employees receive a pension from the company, the Wall Street Journal reports. The sale could lead to a 'cash gain of as much as $585 million that Kodak would use to reduce debt and invest in its business,' according to the Journal. In its update on Thursday, the company said: 'Kodak has been preparing for the pension plan termination for some time and expects to receive approximately $500 million of assets – after meeting our obligations to all pension fund participants – in December 2025 when the transaction closes. Approximately $300 million of the funds are expected to be cash, and approximately $200 million are expected to be investment assets that will be converted into cash.' The company further explained its plans thusly: 'Kodak is required by its loan documents to use the $300 million of cash expected to be received in December to repay term debt. Kodak can then address the remaining $177 million of term debt and $100 million of preferred stock.' Kodak now says that it is 'confident it will repay, extend, or refinance its debt and preferred stock on, or before, its due date.' It also called the recent regulatory filing a 'technical report that is required by accounting rules,' and said it has 'no plans to cease operations, go out of business, or file for bankruptcy protection.' Gizmodo reached out to Kodak for more information. Film buffs have expressed concerns over Kodak's struggles, since the company is one of the largest contemporary providers of film stock to the motion picture industry. The company also still sells an assortment of cameras and provides services for digital, as well.
Yahoo
6 days ago
- Business
- Yahoo
Kodak says there's 'substantial doubt' it can stay in business
Kodak announced in a Securities and Exchange Commission (SEC) filing on Monday that there was "substantial doubt" about the company's ability to stay in business. The company plans to pay off some of its debt and preferred stock using money it expects to get back from its pension plan. The company is hoping to change the terms, push out due dates or refinance its remaining debt and preferred stock obligations, which are payments promised to holders of special shares that usually get paid before regular shareholders. Kodak Lands $765M Us Loan Under Defense Production Act To Boost Drug Production Still, since these plans depend on things outside Kodak's control, they aren't considered reliable under U.S. accounting rules. Because of this, there's serious concern about whether the company can stay in business, as of the date it released its second-quarter financial results, according to the filing. Kodak pioneered film photography and dominated the market for much of the 20th century. It became a household name, known for products like disposable cameras, and at its peak, controlled over 80% of the U.S. film market. Kodak invented the first digital camera in 1975, but failed to embrace the technology, fearing it would cannibalize its film business. Read On The Fox Business App World's Most Powerful Digital Camera Captures Historic First Images When digital photography took over, Kodak's core business collapsed. While it eventually tried to jump into the digital photography game, it struggled to keep up with emerging competitors like Canon, Sony and Nikon, all of which embraced it early on. Riddled with debt, it filed for bankruptcy in 2012. While the company emerged from protection in 2013, it never regained its dominant position in the market. To try to save its business, it pivoted from consumer photography to commercial printing and tech. It simultaneously tried to revive its brand through licensing deals and bold experiments, such as collaborating with Forever 21 on a clothing collection, before the clothing chain collapsed, and with Urban Outfitters to sell its article source: Kodak says there's 'substantial doubt' it can stay in business Sign in to access your portfolio
