A 133-Year-Old Giant on the Brink: Greeks in Debt

In its earnings report released Monday, Kodak stated it lacks &ldquo;secured financing or available liquidity&rdquo; to pay off approximately $500 million in debt, CNN reports.&ldquo;These conditions cast significant doubt on the company&rsquo;s ability to continue as a going concern,&rdquo; the filing said.The company is attempting to raise cash by suspending contributions to its pension fund. It also noted that tariffs are not expected to have a &ldquo;significant impact&rdquo; on operations, as most of its products, such as cameras, inks, and films, are manufactured in the United States, according to Index.Despite the bleak outlook, CEO Jim Continenza insisted the company has made progress.&ldquo;In the second quarter, Kodak continued to make progress toward our long-term plan despite the challenges of an uncertain business environment,&rdquo; he said.A company spokesperson told CNN on Tuesday that they remain &ldquo;confident&rdquo; in their ability to repay a significant portion of long-term debt well before maturity, and to &ldquo;modify, extend, or refinance the remaining debt and/or preferred stock obligations.&rdquo;The news rattled markets, sending Eastman Kodak (KODK) shares down more than 25 percent on Tuesday.The Rise and Fall of a Photography GiantEastman Kodak was founded in 1892, though its origins trace back to 1879, when founder George Eastman patented a plate-coating machine. In 1888, he sold the first Kodak camera for $25.At the time, photography was a pursuit for the few, given its technical complexity. Kodak&rsquo;s camera was designed to bring it to the masses, and Eastman coined the legendary slogan: &ldquo;You press the button, we do the rest.&rdquo;The name &ldquo;Kodak&rdquo; itself has no meaning. According to the company, Eastman invented it simply because he liked the letter K. &ldquo;The letter &lsquo;K&rsquo; was my favorite; it feels like a strong, punchy letter,&rdquo; he explained.Kodak went on to dominate the market for decades. In the 1970s, The Economist reported the company held 90 percent of U.S. film sales and 85 percent of camera sales. Paul Simon&rsquo;s 1973 hit Kodachrome even topped the charts. Ironically, Kodak&rsquo;s decline was partly due to the technology it pioneered, the first digital camera, introduced in 1975.Failure to Adapt to the Digital EraUnable to adjust to the rise of digital photography, Kodak filed for bankruptcy in 2012, with $6.75 billion in debts owed to 100,000 creditors.A brief recovery came in 2020, when the U.S. government contracted the company to produce pharmaceutical ingredients. The resulting surge in share price was so extreme that trading was halted 20 times in a single day.Even as it faces renewed financial troubles, Kodak has announced plans to expand its pharmaceutical division. It continues to produce film and chemicals for other industries, including the film industry, and licenses its iconic brand for a variety of consumer products.

A 133-Year-Old Giant on the Brink: Greeks in Debt

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