Eastman Kodak completed the reversion of its Kodak Retirement Income Plan (KRIP) on November 26, 2025, and announced the transaction on December 2, 2025. The company received $1.023 billion in excess pension assets, of which $767 million was converted to cash—$609 million in cash and $158 million in non‑cash hedge‑fund assets that are expected to be liquidated for about $100 million by the end of 2026 and the remainder in 2027‑2028. The cash proceeds were used to pre‑pay $312 million of the company’s term loans, bringing the outstanding balance to $200 million and eliminating a significant portion of the $1.5 billion debt load that had been a source of concern after a 2025 going‑concern warning.
The reversion also funded the launch of the Kodak Cash Balance Plan, a new defined‑benefit plan for U.S. employees. The plan is funded with $5 million in cash and $251 million in investment assets, providing the same retirement benefits as the former KRIP without additional cash outlay. This move preserves employee benefits while freeing up capital for strategic initiatives.
Tax implications are substantial: Kodak must pay $153 million in excise taxes by December 31, 2025, reducing the net cash available to the company. After taxes, the company still retains a net cash inflow of roughly $614 million, which is immediately available to strengthen liquidity and support its transformation agenda.
The pension reversion is a cornerstone of Kodak’s broader turnaround strategy. Prior to the transaction, the company’s 2024 revenue had fallen to $1.043 billion from $1.117 billion in 2023, and its net income had slipped to $102 million from $75 million. The debt reduction and cash infusion improve the company’s leverage profile, lower interest expense, and position Kodak to invest in commercial print and advanced materials—segments that have shown growth, such as a 15 % revenue increase in the Advanced Materials and Chemicals division in Q3 2025.
Management emphasized the significance of the transaction. CEO Jim Continenza said the reversion “strengthens our financial foundation, allowing us to focus on operations and safeguard retirement benefits while freeing resources for growth.” CFO David Bullwinkle highlighted that the debt reduction “reduces ongoing interest expense and provides liquidity for strategic investments.” Analysts noted that the move aligns with expectations for a leaner balance sheet and a clearer focus on high‑margin business lines.
The reversion’s impact extends beyond balance‑sheet metrics. By eliminating a large portion of its term loan, Kodak reduces its fixed‑cost burden, improving operating flexibility. The new cash balance plan ensures employee retention and morale, while the freed cash can be deployed to accelerate product development and market expansion in the commercial print and advanced materials sectors, positioning the company for long‑term value creation.
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