Kodak may be facing financial difficulties once again. The company's stock dropped 25% today after a report indicated a half-billion-dollar debt due within a year, lacking a clear repayment strategy, in addition to profit declines and rising costs. Following this, Kodak issued a statement addressing “Misleading Media Reports.”
The sharp decline in Kodak’s stock price due to the financial report not only alarmed investors but also others dependent on their products. Below is Kodak’s full response (also available on kodak.com/en/company/blog-…):
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Statement on Misleading Media Reports
August 13, 2025
Reports stating that Kodak is halting operations, closing down, or filing for bankruptcy are incorrect and show a fundamental misunderstanding of a recent technical disclosure made to the SEC in the company’s second quarter earnings report. These articles are misleading and lack essential context, and we want to clarify the situation.
Key points to note:
- Kodak has no intention of ceasing operations, going out of business, or seeking bankruptcy protection.
- In fact, Kodak is confident in its ability to repay, extend, or refinance its debt and preferred stock by their due dates.
- Once the planned transactions are completed, expected early next year, Kodak will have a significantly stronger balance sheet than it has in years and will be nearly free of net debt.
- The “going concern disclosure” is simply a technical report required by accounting standards.
- We remain committed to fulfilling our obligations to all pension fund participants.
Pension Fund Transaction
Kodak has been preparing for the termination of the pension plan for some time and anticipates acquiring approximately $500 million in assets—after meeting obligations to all pension fund participants—when this transaction concludes in December 2025. About $300 million of these funds are expected to be cash, while around $200 million will be investment assets converted to cash.
Kodak’s Debt Position
To clarify, Kodak currently carries $477 million in term debt and $100 million in outstanding preferred stock. According to its loan agreements, the anticipated $300 million cash influx in December will be used to repay term debt. Kodak will then address the remaining $177 million of term debt and the $100 million in preferred stock.
Kodak's Ongoing Operations
Alongside efforts to reduce debt and interest expenses, we believe our business remains stable and self-sustaining. In Q2 2025, we utilized only $3 million in cash, mainly for growth initiatives, marking a significant improvement from Q1, and we do not intend to depend on cash from the pension fund transaction for operational funding.
In summary, Kodak is confident in its strategy to meet all obligations and optimistic about its future. For more detailed information on this matter, please refer to Kodak's Form 10-Q filed with the SEC on August 11, 2025, including the cautionary language regarding forward-looking statements included in that filing, which are referenced here.
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#editorial🔥
The announcement of Kodak’s financial report, which caused a 25% drop in their stock price, alarmed not only investors but also those reliant on their products. Below is Kodak's complete response (also available at https://www.kodak.com/en/company/blog-post/statement-regarding-misleading-media-reports): #editorial.