Kodak denies false bankruptcy claims; repudiates spreading speculation
Kodak, the iconic photography company, is currently navigating serious financial difficulties, with approximately $500 million in debt maturing within the next year. However, the company has outlined a plan to address its financial strain and remains optimistic about its future.
According to Kodak's second-quarter 2025 report, the company's revenue declined by 1% year-over-year to $263 million, with a net loss of $26 million. Gross profit fell 12%, and operational EBITDA dropped 25%. The cash balance declined by $46 million since the end of 2024, leaving $155 million in hand [1][2][4].
To alleviate its financial pressure, Kodak is taking several measures. The company plans to terminate its U.S. Retirement Income Plan (KRIP) to release about $500 million in pension assets by year-end, which will be used to pay down debt [3][5]. Additionally, Kodak has entered an at-the-market equity offering agreement to raise up to $100 million by selling stock [5]. The company also intends to refinance or extend remaining debt and preferred stock obligations to avoid default [3][5].
The "going concern" warning in Kodak's SEC filing is a technical requirement under accounting rules, not an indication of imminent financial distress [6]. The company insists that it does not plan to use funds from the pension transaction for day-to-day operations [7].
Despite the challenges, Kodak remains confident in its ability to meet its obligations. By early next year, the company anticipates holding its strongest balance sheet in years and being "virtually net debt free" [8]. Kodak is also committed to meeting its obligations to all pension fund participants [9].
The company has issued a strongly worded statement to clarify its financial position, stressing that the recent reports are inaccurate and omit critical context [10]. Kodak's operations remain stable and self-sustaining [4].
In a separate development, it was revealed that Sebastian Oakley, a Fellow of the Royal Society of Arts, has been involved in photography and equestrian-related work for nearly two decades. He is familiar with various photography and cinema equipment, including products from Nikon, Leica, Phase One, Hasselblad, Alpa, Sinar, Sony, RED, ARRI, and uses his Leica M-E or Leica M2 for Street/Documentary photography in his spare time [11].
As Kodak continues to work towards financial stability, it is focusing on reducing debt and investing in long-term business growth. The company has pointed to its Form 10-Q filed with the SEC on August 11, 2025, for additional financial details [12].
- In an attempt to improve its financial situation, Kodak plans to use the $500 million released from terminating its U.S. Retirement Income Plan (KRIP) to pay down its debt of approximately $500 million maturing within the next year.
- To generate additional funds, Kodak has entered an at-the-market equity offering agreement, aiming to raise up to $100 million by selling stock.
- Kodak also intends to refinance or extend remaining debt and preferred stock obligations to avoid default, as part of its financial recovery plan.
- Despite facing serious financial difficulties, Kodak anticipates holding its strongest balance sheet in years and being "virtually net debt free" by early next year, with a focus on reducing debt and investing in long-term business growth.
