Kodak has insisted that reports that the company will cease operations are false and misleading. The allegations stem from a misunderstanding of the disclosures in its Q2 financial report filed with the US Securities and Exchange Commission (SEC). The report was published without taking into account the true context and Kodak has come forward to correct the perception.
Kodak has stressed that it has no plans to cease operations, close its business or file for bankruptcy protection. Instead, it is confident that it can pay or restructure its debt before the deadline.
When the planned transaction is completed early next year, Kodak will be in a stronger financial position and almost debt-free.
The disclosures mentioned in the previous financial report are a requirement required by accounting regulations, and do not mean that Kodak faces a risk of closure.
Kodak also assured that all obligations to the pension fund will continue to be met as usual.
Kodak has prepared for the termination of the pension plan and expects to receive approximately US$500 million in assets when the transaction closes in December 2025.
Of that amount, approximately US$300 million will be received in cash, while the remaining US$200 million will be investment assets that will be converted to cash.
After fulfilling all obligations to the pension fund, Kodak will use the US$300 million to pay down a significant portion of its long-term debt as set forth in the loan documents.
The remaining US$177 million in debt and US$100 million in shares will be settled through a planned financing plan.
In terms of day-to-day operations, Kodak is performing steadily and is confident in its plans to meet all of its financial commitments and the company's future.