Kodak says its not going out of business, despite rumors of an imminent demise and brutal statements in its Q2 earnings report.
After posting its latest SEC filing, the company insisted it is still alive, saying recent reports of impending doom are "inaccurate" and "reflect a fundamental misunderstanding of a recent technical disclosure."
Kodak said this in a statement clarifying its financial position after forward-looking statements in its 10-Q filing was picked up by several news outlets.
"Kodak has debt coming due within twelve months and does not have committed financing or available liquidity to meet such debt obligations if they were to become due in accordance with their current terms," said Kodak, which reported roughly $500 million in debt. "These conditions raise substantial doubt about Kodak’s ability to continue as a going concern."
The gloomy outlook led some outlets to interpret this as the end of the road for the 130-year-old U.S. company, which pioneered mainstream camera and film production. But Kodak quickly issued a statement to "set the record straight," saying it "has no plans to cease operations, go out of business, or file for bankruptcy protection." In short, Kodak says the obituaries were premature.
Instead, Kodak says its financial plans for the upcoming year will enable it to pay off its debts on time, including obligations to its pension fund.
A Kodak engineer created the first digital camera, all the back back in the '70s. But over time, Kodak failed to capitalize on its technical innovations, betting instead on its film business and letting competitors move in on its market. Other photography companies, notably Japanese camera makers like Nikon and Fujifilm, rose to prominence as go-to digital cameras for amateurs and professionals alike.
More recently, Kodak diversified its business to manufacture chemicals and pharmaceutical ingredients. "We believe our business is stable and self-sustaining," Kodak said of its ongoing operations.
