Kodak, the company that has revolutionized the world of photography, is on the verge of bankruptcy after 133 years of activity. The company warned investors on Monday on not having the necessary funds to extinguish the loan of 500 million dollars, raising the fear that in the future the company could be forced to cease its activities. The company, which is based in Rochester, in the state of New York, has said that it disposed of $ 155 million of liquidity and means equivalent to June 30, including 70 million dollars held in the United States.
The latest report of the company
As a leading company of the photographic sector, Eastman Kodak for several years ago is very difficult to remain in business and cope with the next debt obligations. From the report published on Monday it revealed that the company has expiring debts within 12 months and does not have a financing already guaranteed or sufficient liquidity to satisfy these obligations. As a recovery measure, Kodak has said that he will interrupt the payments of the pension plan to his employees to extinguish his debts.
The report says that Kodak recorded a turnover of the second quarter of 263 million dollars, down 3% compared to the same period of the previous year. The net loss was 26 million dollars, against a profit of 26 million dollars of the previous year.
Doubts about long -term estate
A delicate picture that is also reflected on the stock exchange: the report led to a 19% decrease in Kodak shares on Tuesday. The only positive note: the company will not suffer the latest Trump duties, since most Kodak products are made in the United States.
The financial director of Kodak, David Bullwinkle, said in the Monday report that the company will define by Friday how to fulfill the payments of the pension plan for all participants and plans to complete the renovation of the company by December. According to a Kodak spokesman, it is possible to extinct part of the debt, but doubts about long -term sustainability remain.
The history of the company
Founded by George Eastman in 1880, Eastman Kodak Co. is famous for making photography accessible in the twentieth century. Models such as Brownie and Instamatic cameras have made it famous all over the world, overcoming national borders. However, the competition of the Chinese market and the advent of latest generation smartphones – who made the purchase of a dedicated camera superfluous – weighed on Kodak’s affairs, who in 2012 presented an application for bankruptcy protection and, in the following years, sold many of its activities and patents, closing the famous production center.
If a few years ago Kodak’s goal was to relaunch itself as a new company specialized in the commercial press and packaging, today the plans seem to have changed. According to the latest news, in fact, Kodak is completing a production plant intended for the creation of regulated pharmaceutical products, which could officially enter operation by the end of the year.
