Eastman Kodak, a 133 -year -old photography icon, has issued an alert to investors that their survival is at risk. In a report released on Monday (11), the company said it did not have sufficient guaranteed financing or liquidity to honor US $ 500 million (about $ 2.7 billion) in future debts.
The document mentions that these conditions “raise substantial doubts” about the ability to continue operations. As an emergency measure, Kodak aims to suspend retirement plan payments to preserve cash.
Despite the critical scenario, the company said international tariffs should not relevant its business, as most cameras, paints and films occur in the United States.
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Strategy to prevent insolvency
CEO Jim Continenza stated that the company “continues to progress in its long -term plan, despite the challenges of an uncertain business environment.” In a note to CNN, A spokesman said Kodak is confident of paying a significant part of the loan before maturity and refinance or restructuring the rest.
The market, however, reacted badly: Kodak (Kodk) shares retreated more than 25% on Tuesday’s trading session (12).
From absolute leadership to decline
Officially founded in 1892, Kodak revolutionized photography with the portable camera released in 1888 and the slogan “you press the button, we do the rest.” In the 1970s, it held 90% of the movie market and 85% of camera sales in the US, according to the The Economist.
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The decline began with the technology it itself created: the first digital camera, launched in 1975. The inability to transform innovation into a sustainable business model made room for competitors. In 2012, the company filed a bankruptcy, accumulating US $ 6.75 billion in debt.
By 2020, Kodak even rehearsed a turnaround when it was approved by the US government to produce pharmaceutical ingredients, which caused a strong momentary of the actions.
Today, in addition to following the manufacture of films and chemicals, the company licenses its brand to consumer items and seeks to expand acting in the pharmaceutical sector.
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(com CNN)
