On August 19th, Kodak issued a statement regarding misleading media reports: Reports by some media about Kodak’s imminent cessation of operations, termination of business, or application for bankruptcy are inaccurate, reflecting a fundamental misunderstanding of the technical disclosure information in Kodak’s recent submission of the second-quarter financial report to the U.S. Securities and Exchange Commission (SEC). These reports are misleading and lack key contextual information, and we hereby clarify them.
The key points to be emphasized are as follows: Kodak has no plans to stop operating, terminate its business, or apply for bankruptcy protection; instead, Kodak is confident in repaying, extending, or refinancing its debts and preferred stock upon or before their maturity; after the planned transactions are expected to be completed next year, Kodak’s balance sheet will be significantly strengthened compared with recent years, and it will almost achieve zero net debt; “going concern disclosure” is a technical report required by accounting standards; we will continue to fulfill our obligations to all pension plan participants.
Pension plan transaction status: Kodak has been preparing for the termination of the pension plan for some time, and is expected to receive about $500 million in assets when the transaction is completed in December 2025, after fulfilling its obligations to all pension plan participants. Among them, about $300 million is cash, and about $200 million is investment assets that can be converted into cash.
Kodak’s debt status: Currently, Kodak has $477 million in loans and $100 million in issued preferred stock. According to the relevant loan agreement requirements, Kodak must use the $300 million cash expected to be received in December 2025 to repay the loan. Kodak can then deal with the remaining $177 million loan and $100 million preferred stock separately.
Kodak’s going concern status: In addition to focusing on reducing debt and interest expenses, we believe that our business is robust and self-sustaining. In the second quarter of 2025, we only used $3 million in cash, mainly for growth investments, which is a significant improvement compared with the previous quarter, and we have no plans to rely on the cash from the pension plan transaction to fund our operations.
In short, Kodak is confident in its plans to fulfill all obligations and holds a positive outlook for the future. For more detailed information on this topic, please refer to Kodak’s Form 10-Q submitted to the SEC on August 11, 2025, which includes cautionary statements in the document referred to in this article regarding forward-looking statements.