Debts too high: Kodak warns of possible end, but is confident
Over the next few months, Kodak will have to pay back more money than it has in its coffers. The historic company is therefore issuing a warning now.
(Image: JHVEPhoto/Shutterstock.com)
In a mandatory notification to the US Securities and Exchange Commission, the long-established US company Kodak has pointed out that there is "substantial doubt" whether it will be able to maintain its business activities in the coming months due to upcoming debt repayments. According to the notification to the Securities and Exchange Commission (SEC), this is due to upcoming debt repayments that are higher than the funds currently available for this purpose. However, Kodak assures that it is still confident that it will be able to service its liabilities on time. The money for this is to come from changes to its pension payments, over which it does not have sole control. More clarity should be available at the end of the week.
From industry giant to niche existence
Kodak can look back on more than 130 years of history and was one of the world's most important manufacturers of photographic equipment and, above all, cameras in the 20th century. The company made a decisive contribution to establishing photography as an occupation for the broad masses of the population. Over the decades, a giant of the industry had emerged, but despite an early entry into the digital photography business, it was eventually overrun by it. The group went bankrupt in 2012, but was able to return as a specialist in digital printing. Nevertheless, with a few exceptions, it has largely remained a niche product ever since.
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In the notification to the SEC, Kodak now also refers to the uncertainties associated with the tariffs imposed by the US government under Donald Trump. The company is still investigating their effects. During his first term in office, the US president caused the company's share price to soar when he announced that the company would enter the pharmaceutical production sector with government support as part of the coronavirus crisis. Only four years later, Kodak is now on the verge of completing a production facility for basic raw materials for the pharmaceutical industry, reports the AP news agency. It is due to start production this year.
(mho)
