Kodak on the brink of bankruptcy again: what led to the financial catastrophe.

Eastman Kodak on the brink of bankruptcy

Founded 133 years ago, Eastman Kodak is once again on the verge of survival. In its second-quarter financial report, the company acknowledged 'significant doubts' about its ability to continue operations, indicating a high risk of bankruptcy.

The main issue lies in the debts, insists CNN. Currently, the liabilities amount to about 500 million dollars, which the company does not have sufficient liquidity to cover.

The management plans to suspend contributions to the pension fund to reduce costs, which has sparked a wave of criticism. At the same time, Kodak CEO Jim Continenza is trying to convince investors of the possibility of getting out of the situation.

Market reaction to the news

The public markets immediately felt the impact of the announcement. On Tuesday, shares of Eastman Kodak (KODK) fell by more than 25%, reflecting the low confidence of investors in the company's future operations. Although management promises to pay off the debts and refinance them, analysts warn of possible bankruptcy, as in 2012.

Kodak's history of successes and failures

Kodak was a leader in the photography industry in the 20th century, controlling a massive market share. However, in 1975, the company failed to adapt to the digital age, leading to a loss of position. After several unsuccessful attempts to save the business, Kodak is now on the brink.

CEO Jim Continenza expresses optimistic views on the company's future, but market experts are convinced that without radical changes in Kodak's strategy, it will not be able to compete with the modern giants of the digital industry.