Eastman Kodak Issues ‘Going Concern’ Warning

Eastman Kodak yesterday issued financial results for its second quarter, and also issued a “Going Concern” warning, as it may not have enough money to pay its debt, which is approximately $550 million.

The 133-year-old company headquartered in Rochester, New York, makes inkjet presses and inks, cameras, lithographic printing plates, photographic and industrial films, and more recently, pharmaceutical products. It reported a loss of $26 million for its second quarter, and revenue of $263 million, down 1 percent year-over-year.

Going Concern Assessment

In its second-quarter Form 10-Q filing, Kodak included a going concern assessment. It said it plans to pay down debt by ceasing payments to its retirement fund, and also plans to extend or refinance its debt.

However, it noted that these plans are not solely within its control and therefore are not deemed “probable” under U.S. accounting rules. As a result, the company stated: “these conditions raise substantial doubt about the company’s ability to continue as a going concern.”

Chapter 11 Bankrupcty

This isn’t the first time Kodak has experienced financial struggles. In 2012, the company filed for Chapter 11 bankruptcy protection amid the shift to digital cameras and debt burdens. It emerged from bankruptcy in 2013 after a significant restructuring. More recently, the FDA certified Kodak for producing pharmaceutical products in the U.S.A.