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. These articles are misleading and missing critical context, and we'd like to set the record straight.
The most important things to know are:
Kodak has no plans to cease operations, go out of business, or file for bankruptcy protection.
To the contrary, Kodak is confident it will repay, extend, or refinance its debt and preferred stock on, or before, its due date.
When the transactions we have planned are completed, which is expected to be early next year, Kodak will have a stronger balance sheet than we have had in years and will be virtually net debt free.
The "going concern disclosure" is a technical report that is required by accounting rules.
We will continue to meet our obligations to all pension fund participants.
Pension Fund Transaction
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.
Kodak's Debt Position
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