Eastman Kodak Co Liquidation Value

Eastman Kodak (KODK) as of March 31, 2026 presents a deeply negative liquidation posture at the cash liquidation value level, consistent with MFFAIS-reported CLV of negative $150M. Under liquidation lens: total assets of $1.557B face material haircuts — cash of $299M recovers at par, AR of $135M haircuts to roughly $122-128M, inventory of $255M haircuts to ~$153M (60%), PP&E net of $195M haircuts to ~$98-137M (50-70%). The largest asset by book value is the non-current pension asset of $303M, which represents KRIP reversion proceeds converted into hedge fund investments still in redemption — recoverability is uncertain and timing-dependent (company expects conversion primarily 2027-2028), warranting a significant discount versus carrying value. Intangibles of $17M and goodwill of $12M recover at zero. Restricted cash of $100M (current $8M plus non-current $92M) includes workers' compensation collateral ($75M locked with NYS WCB and surety bonds) and L/C cash collateral ($26M); these are encumbered and not freely available.

Total liabilities stand at $885M at face value. Key liability stack: current liabilities of $314M including trade payables $111M, other current liabilities $140M (includes deferred revenue $91M, preferred dividend accruals, and various accruals), current long-term debt $52M, and current operating lease $11M. Non-current liabilities of $571M include pension/OPEB obligations of $187M, long-term debt of $108M (down from prior period after $50M term loan prepayment in Q1 2026 plus required $50M additional prepayment by June 1, 2026), other non-current liabilities of $249M, deferred tax $29M, environmental $9M, asset retirement $44M, and workers' compensation $50M. The $42M embedded derivative liability on the Series B preferred (now 6.0% Series B Convertible) also sits in the liability stack. Pension obligations at face are significant; the main U.S. plan (KRIP) was terminated in Q4 2025 with surplus assets flowing back to the company, but the non-U.S. plans carry $187M unfunded liability at face. The company renegotiated Series B mandatory redemption to June 2029 (from May 2026), removing a near-term cash cliff, but preferred stock of $102M (accretion basis) plus new 6.0% dividends represents ongoing senior claim on equity.

Key change since prior filing (10-K December 31, 2025): The company completed a material capital structure reset in Q1 2026 — $50M term loan paid down, Series B preferred extended to 2029 with rate increased to 6.0%, and KRIP hedge fund redemptions generating $46M cash in Q1 (with $39M more in April 2026). Long-term debt reduced from approximately $210M to $160M (current plus non-current). Despite this deleveraging, operating cash flow remains negative ($30M used in operations Q1 2026), inventory built $38M quarter-over-quarter, and the $303M pension asset on balance sheet represents illiquid investments still unwinding. Net equity on book is $600M but AOCE is negative $117M; retained deficit stands at $537M. The OLV of positive $240M from MFFAIS reflects PP&E and working capital tangible floor, but under the liquidation lens the overall recovery to equity is constrained by face-value liabilities exceeding haircut asset values.