Kodak Faces Another Crisis Moment After Q2 Loss As Debt Threatens Survival

Kodak, the once iconic company known for its film cameras, may be on the brink of another collapse.

Eastman Kodak (KODK) on Monday warned about its ability to pay its debt and raised a "going concern" risk, even as it attempts to find savings by terminating its retirement pension plan.

The warning came during its second-quarter report. The company swung to a $26 million loss, compared to a similar profit a year earlier, while revenue declined 1.5% to $263 million.

"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," the company said in a Securities and Exchange Commission filing.

"These conditions raise substantial doubt about Kodak's ability to continue as a going concern."

Founded in 1888, Kodak established itself as the gold standard in photography in the 20th century, to the point that the phrase "Kodak moment" became an idiom for capturing cherished memories. The company is also known for breakthroughs such as roll film and color photography.

However, with the advent of smartphones and digital cameras, Kodak's core business began to crumble, and the company filed for bankruptcy in 2012.

In its current form, Kodak focuses on commercial printing, packaging, and licensing its intellectual property (IP) to camera manufacturers and printers. It mainly supplies products for industrial and healthcare imaging.

On Monday, the company said it would terminate its retirement income plan to pay down debt.

On Stocktwits, the retail sentiment for Kodak was 'neutral' as of the last reading. KODK shares are up 3.2% year-to-date, compared to the 8.4% gains in the benchmark S&P 500 (SPX) index.

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