KODAK: STUNNING UPDATE OF CLOSING REPORT

Written by Michael Thervil

KODAK: STUNNING UPDATE OF CLOSING REPORT

[Kodak] In response to press all over the United States and around the world, Kodak has announced yesterday that it would not necessarily be closing its doors and will continue to resume its operations. Kodak has also publicly announced that it will not be filing for bankruptcy protection. According to the kodak website:

“Media reports that Kodak is ceasing operations, going out of business, or filing for bankruptcy are inaccurate and reflect a fundamental misunderstanding of a recent technical disclosure the company made to the SEC (security exchange commission) in its recently filed second quarter’s earnings report. These articles are misleading and missing critical context, and we’d like to set the record straight.”

Kodak’s official statements also included that "Kodak is confident it will repay, extend, or refinance its debt and preferred stock on, or before its due date.” They also stated: “We will continue to meet our obligations to all pension fund participants.”

For lovers of the kodak brand and us at VEDA World News, this is nothing short but a breath of fresh air. Kodak mentioned that it “has been preparing for the pension plan termination for some time and expects to receive approximately $500 million of assets" after meeting its obligations with “$300 million of the funds to be cash” along with another $200 million in assets that will be “converted into cash”. 

Currently Kodak owes $477 million in term debt and another $100 million in outstanding stock. With that, kodak by law will be required to use $300 million of cash to be received in December to pay back its term debt with the rest of the $177 million  in conjunction with another $100 million of preferred stock. Again, this is good news, but no matter how Kodak slices it, it still has a lot of debt on its shoulders as a company. Should any other updates be released from the kodak brand, we will keep you informed.