Kodak is not dead yet

The US photography company announced plans to turn around the losses with a debt of more than $500 million.

Kodak film rolls were once popular. Photo: Pixabay .

Kodak, the famous American photography company, said it will not go bankrupt, despite rumors and harsh comments in its second quarter financial report. According to that document, indicators such as revenue, profit, and EBITDA all decreased.

The company has confirmed that it is still operating after releasing its latest filing with the US Securities and Exchange Commission (SEC), while recent reports of an “impending collapse” are inaccurate and lacking in technical information.

“Kodak has debt obligations that are due within the next 12 months and does not currently have committed financing or available liquidity to meet these obligations at this time,” the company said. Total debt obligations are approximately $500 million .

In its second-quarter report, Kodak added disclosures regarding its assessment of its ability to continue as a going concern. Its plan to provide adequate funding is to use the proceeds expected to be returned after fulfilling its payment obligations under the Kodak Pension Plan.

Kodak said its financial plans for next year will enable it to meet its debt obligations, including its pension plan, on time. However, these plans are not entirely within the company’s control and are therefore not considered feasible under U.S. GAAP.

Several outlets including CNN have raised doubts about the company's ability to continue operations as of the release of its second-quarter financial report.

More than 130 years old, Kodak was created to make photography more accessible to the general public, even though it was not yet a mass-market business. George Eastman, the company’s founder, coined the famous slogan “You press the button, we do the rest.”

Kodak's heyday came in the 1970s, when the company held 90 percent of the film market and 85 percent of the camera market in the United States. That dominance didn't last, however, in part because the first digital camera, a technology Kodak invented, was introduced in 1975.

They failed to capitalize on the rise of digital technology . By 2012, the company was forced to file for bankruptcy. In 2020, Kodak had a brief moment of resurgence when the US government selected them to pivot to manufacturing pharmaceutical ingredients.

Despite recent losses, Kodak said it plans to expand its chemical film business. Meanwhile, Japanese camera makers Nikon and Fujifilm have emerged as the top choice for digital cameras for both amateurs and professionals.

Source: https://znews.vn/kodak-van-chua-chet-post1577366.html