CNBC AI News, August 19th – Recent media reports suggesting Eastman Kodak (NYSE: KODK) is on the verge of ceasing operations, winding down, or filing for bankruptcy have been refuted by Kodak China. In an official statement published on its WeChat account, the company labeled these reports as “inaccurate,” “misleading,” and “lacking crucial context,” attributing them to a “fundamental misunderstanding” of technical disclosures in its recent Q2 filing with the Securities and Exchange Commission (SEC).
Kodak’s statement aims to set the record straight, emphasizing key points to reassure investors and stakeholders:
Kodak unequivocally states that it has no plans to cease operations, terminate its business, or seek bankruptcy protection.
The company expresses confidence in its ability to repay, extend, or refinance its debt and preferred stock obligations on or before their maturity dates.
Kodak anticipates a “significantly strengthened” balance sheet, moving “close to net-zero debt,” following the completion of a planned transaction expected in early 2026.
The “going concern disclosure” mentioned in the financial report is characterized as a technical reporting requirement mandated by accounting standards.
Kodak remains committed to fulfilling its obligations to all pension plan participants.
Regarding the pension plan transaction: Kodak has been preparing to terminate its pension plans for some time. Upon completion of the transaction, projected for December 2025 (and after fulfilling all obligations to plan participants), the company expects to receive approximately $500 million in assets, including roughly $300 million in cash and $200 million in marketable securities.
Debt Reduction Strategy: Kodak’s current debt obligations comprise $477 million in loans and $100 million in outstanding preferred stock. As per loan agreement terms, $300 million of the cash expected from the pension plan transaction in December 2025 must be used to repay a portion of the outstanding loans. Kodak will then address the remaining $177 million in loans and the $100 million in preferred stock.
Kodak underscores that its business fundamentals are “robust and self-sustaining.” To illustrate this point, the company highlighted that it used only $3 million in cash during Q2 2025 (primarily for growth investments), a significant improvement compared to Q1. Kodak clarified that it does not intend to rely on the cash proceeds from the pension plan transaction to fund its day-to-day operations, signaling fiscal prudence and strategic capital allocation.
In conclusion, Kodak’s statement conveys “strong confidence” in its plans to meet all financial obligations and expresses an “optimistic” outlook for the future. The company seeks to reassure stakeholders that despite the misinterpreted financial disclosures, it remains a viable and financially sound entity, navigating its legacy business alongside new strategic initiatives.
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