Kodak Warns About Possible Business Closure

• Kodak may not be able to meet its debt obligations of $500 million.
• The company has suspended payments for its pension plan to conserve cash.
• Kodak plans to expand its production of pharmaceutical products.

The Eastman Kodak Company, founded over 130 years ago, warned about "substantial doubts" regarding its ability to continue business. In its financial statement, Kodak noted that it has no "confirmed financing or available cash" to meet its upcoming debt obligations, which total nearly $500 million.

The company stated that it has debts that need to be paid over the next 12 months, and it does not have secured financial resources for this. Kodak's shares fell by more than 13% during early trading.

Currently, Kodak is trying to raise cash, having suspended payments for its pension plan. The company also stated that it does not expect significant cash inflows into its business, as the majority of production, including cameras and film, is manufactured in the USA.

Since its founding, Kodak has become well-known for its role in popularizing photography. However, the company has reported significant losses due to technological changes, including the transition from film to digital technologies. In 2012, Kodak filed for bankruptcy, and in 2020 it received new opportunities when the U.S. government requested it to produce pharmaceutical ingredients.

The company plans to complete the construction of a plant for the production of regulated pharmaceutical products by the end of the year, continuing to also produce film and chemicals for the industry.

Tags: Economy