Once a synonym for photography, the company is now telling investors that it does not have enough cash to repay its loans, which will raise concerns about its constant presence.
In the second quarter of Monday The earnings report133 -year -old company Eastman Kodak warned investors that upcoming loans payments lack financial resources to earn 500 million millions. The company has no commitment to financing or cash available to pay its loans, which generates “enough doubts” about its “ability to continue”.
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However, New York -based, Rochester plans to collect cash to meet payments: Retirement Pension Plan for employees. Kodak is completely eliminating the pension plan, selling assets placed near the pension plan, and instead giving responsibility to an unknown insurance company to make a future payment. Kodak intends to get between $ 530 million to $ 585 million after taxes through these operations, which is enough to cover its loans.
Kodak’s pension plan covers 35,000 participantsAccording to, including retired and approximately 2,000 existing Kodak employees, Wall Street Journal. Camera Dev currently has about 4 4,000 total employees, per WSJ. After eliminating the pension plan, Kodak is planning to offer a new retirement plan for existing employees.
“The elimination of our US Kodak retirement Income Plan and then the additional funds for repayment, is developing in accordance with the plan to change our US Kodak Retirement Income Plan,” Kodak CFO David Bloonkl said in a revenue. Press release Monday
By the end of the week, Kodak will better understand how he can fulfill his planning responsibilities for the participants, Bill Winkle added. The company plans to repay its loan by using retirement funds by December.
Kodak Updated financial income Show that for the second quarter ending June 30, Kodak reports that revenue has decreased by 1 % year by year. At the same time last year, the net loss for the quarter compared to net income of $ 26 million was 26 million.
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Kodak’s Executive Chairman and CEO Jim Cantinza Still painted a hope in the income press release, which states that Kodak is “continuing” even “uncertain business environment”. Cantonza noted that Kodak “is committed to American manufacturing” and the adventure creates everything from ink to pharmaceutical starting ingredients in the United States.
“The balance of the year, we intend to focus on serving our customers, strengthening our balance sheet, and promoting development business for our future.”
What happened to Kodak?
Kodak’s foundation was laid in 1888, when founder George Eastman introduced $ 25 Kodak cameraA portable camera that was already loaded with the film. Over the next decades, the company’s influence increased. By the 1950s, Kodak had occupied Close to 70 % Of the American Film Market.
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Kodak was a camera and film powerhouse until the 1990s, when digital technology gained importance. Although Kodak was To invent the first digital camera In the 1970s, the company was slow to adapt to technology, and was left behind by 2006 Opponent Like Canon, Nicon, and Fujum in Digital Camera Sale. In the fourth quarter of 2006, Canon Racing forward from Kodak To become the world’s largest digital camera provider.
Due to the reduction of income and increasing competition caused Kodak to file Chapter 11 bankruptcy In January 2012, with a $ 6.75 billion loan. In the bankruptcy process, Kodak collected funds by selling patents worth about $ 525 million to high companies like Apple.
Today, Kodak manufactures commercial printing products, film industry, and modern chemicals in addition to other products. This too Presentation Its identified yellow and black film camera for sale. Kodak was stock More than 30 % In the past month
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