The company disclosed in its Q2 filing that it faces about $500 million in near-term debt obligations—including $477 million in term loans and $100 million in preferred stock—and admitted it doesn’t yet have financing in place to cover them. That triggered a standard “going concern” warning, which accounting rules require when debt looms larger than available funding. Many outlets framed the filing as a sign Kodak was on the verge of collapse.
Kodak pushed back hard. In a statement, it said there are “no plans to cease operations, go out of business, or file for bankruptcy,” calling the reports misleading and rooted in a misunderstanding of the disclosure.
The company’s plan to stay afloat centers on a roughly $500 million payout expected from its pension plan in December 2025—about $300 million in cash and $200 million in investments. The cash portion is earmarked to pay down term debt, while the rest of the obligations—about $177 million in loans plus the $100 million preferred stock—will likely be managed through refinancing or restructuring.
For now, Kodak insists its core business is stable. It burned just $3 million in cash last quarter, mostly to fund growth projects, and says it isn’t relying on pension funds to keep the lights on.
Still, investors are rattled. Kodak’s stock plunged more than 25 percent after the disclosure, reflecting doubts about whether the pension windfall and refinancing plans will be enough to buy the 133-year-old company more time.