Kodak Expresses Concern Over Its Ability to Stay in Business Amid Financial Struggles

Kodak has announced "substantial doubt" about its ability to stay in business due to significant debt and preferred stock obligations. The company plans to pay off some of its debt using money from its pension plan, but this depends on factors outside of its control. Kodak dominated the film market in the 20th century, but failed to adapt to digital photography, leading to its decline and bankruptcy in 2012. Despite emerging from protection in 2013, the company has struggled to regain its position in the market.

Eastman Kodak Co., the iconic photography company, has issued a warning indicating "substantial doubt" about its ability to continue operations due to significant debt and preferred stock obligations. The company, which has been struggling to regain its market position after a 2012 bankruptcy, now faces a critical juncture in its financial health.

In a recent regulatory filing, Kodak disclosed that it lacks committed financing or available liquidity to meet its debt obligations, which are due within 12 months [1]. This disclosure raises substantial doubt about Kodak's ability to continue as a going concern. The company has $155 million in cash and cash equivalents as of June 30, with $70 million held within the U.S. [1].

Kodak has outlined a plan to address its debt obligations by utilizing funds from its pension plan. The company expects to receive approximately $300 million from the reversion and settlement of its U.S. pension fund by December 2025 [3]. This money will be used to pay off a significant portion of its term loan and to amend, extend, or refinance its remaining debt and preferred stock obligations. However, the company acknowledged that the success of this plan depends on factors outside of its control [3].

Kodak's financial struggles are not new. The company has faced significant challenges in adapting to the shift from film to digital photography, which led to its bankruptcy in 2012 [2]. Despite emerging from protection in 2013, Kodak has continued to face financial difficulties and has been unable to regain its dominant position in the market.

The company's stock has seen a significant decline following the announcement, with shares sliding more than 25% in midday trading [1, 2]. Despite the challenges, Kodak remains confident in its ability to meet its debt obligations and continue operations. The company is also focusing on strategic pivots, such as entering the pharmaceutical manufacturing sector, as a long-term growth opportunity [2].

Kodak's journey from a dominant force in the photography industry to a company facing significant financial uncertainty is a stark reminder of the challenges that companies face when they fail to adapt to technological changes. As Kodak navigates its current financial landscape, investors and financial professionals will be closely watching to see how the company addresses its debt obligations and whether it can successfully pivot to new growth opportunities.

References:
[1] https://spectrumlocalnews.com/nys/rochester/news/2025/08/12/kodak-cautions-on-business-operations-but-remains-confident-it-can-meet-debt-obligations
[2] https://www.proactiveinvestors.com/companies/news/1076563/kodak-warns-it-may-not-be-able-to-continue-operations-1076563.html
[3] https://abcnews.go.com/GMA/Living/145-year-film-company-kodak-pushes-back-reports/story?id=124607886