Overview

• In its Aug. 12 SEC filing, Kodak warned of substantial doubt over its ability to continue as a going concern because roughly $500 million of debt comes due within 12 months without committed financing.
• Shares plunged about 25% after the disclosure, reflecting investor concern over the company’s short-term liquidity.
• The company said the going-concern language is a technical accounting requirement and affirmed it has no plans to cease operations or file for bankruptcy protection.
• Kodak expects to receive approximately $300 million in cash from its U.S. pension-plan reversion by December, with those proceeds designated for debt repayment.
• Management is negotiating amendments or extensions to its term loan and actively seeking refinancing for its remaining debt and preferred-stock obligations due within the next year.