Kodak Warns of Potential Bankruptcy as It Fights to Stay Afloat Amid $470 Million in Debt and Slashed Pension Plan.

Kodak, the iconic US film company, has warned it may go out of business after 130 years due to over $470 million in debt, slashes its pension plan, and faces uncertainty in its ability to continue. The company's revenue decreased 12% in Q2, and its cash balance fell 23% since December. Kodak plans to focus on its advanced chemicals and materials sector moving forward.

Eastman Kodak, the storied US film company, has issued a stark warning to investors, indicating that it may not survive much longer due to over $470 million in debt. The company reported in its recent earnings that it lacks "committed financing or available liquidity" to meet its upcoming debt obligations, raising substantial doubt about its ability to continue as a going concern [1].

Kodak's CEO, Jim Continenza, acknowledged the company's progress despite the challenges of an uncertain business environment. However, the company's financial struggles are evident in its quarterly performance. Revenue for the second quarter ended June 30, 2025, was $265 million, a 1% decline from the previous year. More concerning is the company's net loss of $26 million, a 200% increase from the same period in 2024 [2].

To address its immediate financial needs, Kodak plans to cease payments for its retirement pension plan, which is expected to generate approximately $500 million in cash. This move, however, will not provide long-term solutions and is a temporary measure to meet its debt obligations [3].

The company's debt situation is further exacerbated by the upcoming maturity of its $500 million loan in May 2026. Kodak's chief accounting officer and corporate controller, Richard Michaels, warned that the company does not have committed financing or available liquidity to meet these debt obligations [2].

Despite these challenges, Kodak remains optimistic about its future, particularly in its advanced chemicals and materials sector. The company aims to focus on this segment, which includes manufacturing films and chemicals for businesses and licensing its brand for various consumer products [4].

Kodak's history is marked by innovation and resilience. Founded in 1892, the company was once responsible for 90% of film and 85% of camera sales in the United States. However, the rise of digital technology led to its decline, culminating in a bankruptcy filing in 2012 [1].

References:
[1] CNN. (2025, August 12). Kodak survival warning. Retrieved from https://www.cnn.com/2025/08/12/business/kodak-survival-warning
[2] TechSpot. (2025, August 12). Kodak debt obligations threaten company survival. Retrieved from https://www.techspot.com/news/109051-kodak-debt-obligations-threaten-company-survival-133-years.html
[3] WHEC. (2025, August 12). Kodak eliminates pension program to help pay debts. Retrieved from https://www.whec.com/top-news/kodak-plans-to-eliminate-pension-plan-to-raise-cash-amid-dire-financial-situation/
[4] Fortune. (2025, August 13). Kodak financial troubles: Survival risk, debt, declining sales. Retrieved from https://fortune.com/2025/08/13/kodak-financial-troubles-survival-risk-debt-declining-sales/