Kodak denies shutdown rumors amid financial struggles, cites plans to repay debt and strengthen balance sheet.

Eastman Kodak denies reports of shutdown amid financial struggles, despite its earnings report warning of insufficient funding to meet debt obligations. The company plans to repay, extend, or refinance its debt and expects a stronger balance sheet by early next year. Kodak will use $300 million from its pension plan termination to address a large portion of its $477 million in term debt.

Eastman Kodak has denied reports of an impending shutdown, despite its recent earnings report revealing significant financial challenges. The company has warned investors that it lacks committed financing or available liquidity to meet debt obligations coming due within the next 12 months. However, Kodak swiftly issued a press release to counter these claims, stating it has no plans to cease operations or file for bankruptcy protection [1].

In its earnings report, Kodak mentioned that it expects to receive $300 million from the termination of its pension plan in December 2025. This cash will be used to address a substantial portion of its $477 million in term debt. The company plans to then address the remaining $177 million in debt and another $100 million in preferred stock outstanding [2].

Kodak has faced financial struggles for years, as digital technology has eclipsed traditional film sales. The company previously filed for bankruptcy in 2012 and has since shifted its focus to commercial printing, specialty chemicals, and pharmaceuticals. Despite these changes, Kodak continues to face significant financial hurdles [3].

The company's latest quarterly earnings report showed a decline in revenue and cash reserves, raising concerns about its ability to meet its debt obligations. However, Kodak has stated that it expects to have a stronger balance sheet by early next year, indicating a commitment to addressing its financial challenges [2].

In recent years, some Gen Z users have embraced older technology, such as compact cameras and dumb phones, as a way to tap into nostalgia for a time they never experienced. This trend has provided some respite for Kodak, which has seen a resurgence in interest in its products [3].

References:
[1] https://finance.yahoo.com/news/kodak-denies-shutting-down-amid-163911014.html
[2] https://www.storyboard18.com/how-it-works/kodaks-future-in-peril-130-year-old-photography-icon-warns-of-possible-shutdown-amid-470-million-debt-78898.htm
[3] https://techcrunch.com/2025/08/14/kodak-denies-its-shutting-down-amid-media-reports-of-finicial-struggles/