Kodak declares 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, declareing recent reports of impconcludeing doom are “inaccurate” and “reflect a fundamental misunderstanding of a recent technical disclosure.”
Kodak stated this in a statement clarifying its financial position after forward-viewing 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,” stated Kodak, which reported roughly $500 million in debt. “These conditions raise substantial doubt about Kodak’s ability to continue as a going concern.”
Mashable Light Speed
The gloomy outview led some outlets to interpret this as the conclude 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,” declareing it “has no plans to cease operations, go out of business, or file for bankruptcy protection.” In short, Kodak declares the obituaries were premature.
Instead, Kodak declares 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 relocate in on its market. Other photography companies, notably Japanese camera buildrs 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 stated of its ongoing operations.
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