Kodak says it is not shutting down, plans pension assets to cut debt

Kodak says it is not shutting down, even as its latest financial disclosures show debt coming due within a year and no guaranteed financing to cover those obligations. In a Securities and Exchange Commission filing and subsequent company statements, Eastman Kodak Corp. outlined a plan to use roughly $500 million in assets tied to the termination of its pension plan, expected in December 2025, to reduce debt and shore up liquidity. The company notes that, after leveraging the pension settlement, it intends to address remaining term debt and a portion of its preferred stock, while stressing that its ongoing operations remain stable.

The filing highlights a substantial doubt about Kodak’s ability to continue as a going concern under U.S. accounting standards, given principal debt maturities of about $477 million in term debt and $100 million of outstanding preferred stock, with no committed financing in place to meet those obligations should they come due under current terms. Kodak officials emphasize that the doubt is tied to financing arrangements and timing, not to an immediate cessation of business. The company has said it plans to pay down debt and refinance or extend...