Eastman Kodak Co. is facing heightened scrutiny after its latest 10-Q filing flagged a “going concern” risk tied to more than $470 million in term loan and preferred stock obligations due within the next 12 months. The disclosure, while required under accounting rules, signals that the company’s existing cash position is insufficient to cover upcoming payments without additional financing or asset reallocation.
Kodak’s plan to address the debt includes using roughly $300 million expected from the reversion of its U.S. pension fund in December, once all participant obligations are met. Because the pension reversion is not entirely under Kodak’s control, it is not considered “probable” under U.S. GAAP standards — a technicality that triggered the going concern language. The company also intends to pay down a significant portion of its term loan ahead of schedule and refinance or extend remaining obligations.
In 2024, Kodak announced its intention to end its retirement income plan to reduce leverage. A decision on satisfying pension participant obligations is expected by August 16, with completion of the reversion anticipated by year-end.
Kodak’s financial performance in the second quarter showed revenues of $263 million, down 1% year-over-year. When adjusted for favorable currency impacts, revenues declined 3% compared to the prior year. The company, which restructured in 2013 following bankruptcy, remains focused on commercial and package printing markets, while continuing U.S.-based manufacturing of products including printing plates, films, inkjet technology, and pharmaceutical key starting ingredients.