00:00In-depth, investigative, you're watching News 10 NBC at 5 with Deanna DuBerry and First Alert Meteorologist Stacey Pension.
00:14Kodak is warning investors the end may soon be near.
00:18The pillar of Rochester industry and history says it has a $500 million loan due soon and it's scrambling to find ways to pay it.
00:26News 10 NBC investigative reporter Jennifer Lukey reports Kodak plans to find some cash by eliminating its pension plan.
00:35This company has been in our community for more than 130 years and this is one of the most dire financial situations it has ever been in.
00:45Kodak needs to free up some cash and one of the ways it intends to do that is by eliminating the pension plan.
00:51But I want to be clear, this does not financially impact the thousands of Kodak retirees in this area.
00:59It's actually a good deal, Jen. Here's why.
01:02The people who are getting so much a month as a pension will continue to get that.
01:07And what's better about the termination is this.
01:09Instead of a company that may be weak, that may be losing money, that may have a hard time making payments in the future,
01:17what Kodak will do with the money from terminating it is, number one, required by federal law,
01:24pay a bunch of insurance companies to guarantee the pension of all the retirees.
01:29It also frees up money for Kodak to pay down some of its other debts.
01:33So then by eliminating the pension fund, that just means moving forward, they don't offer that to any future employees.
01:40That's correct. Kodak won't have a pension plan for future people.
01:44It's sort of like Kodak is just kind of like this nostalgic company in our community.
01:50But I have to wonder, do you even suggest to people that they continue to invest in it?
01:55So, Jen, you're known for being very direct. That is a very direct question.
02:02No, Kodak as an investment, it's a speculative thing.
02:06Now, if you want to speculate, you want to take some chances and take some risks, Kodak might be right for some people.
02:11But for the average person, it's not the kind of investment we think would be something that the average person would put under their pillow and go to sleep at night.
02:20Kodak continues to manufacture films and chemicals for businesses here in Rochester.
02:26Whether its long-term plan to save itself is successful remains to be seen.
02:32In Rochester, Jennifer Lukey, News 10 NBC.
02:35And he is so right. Our Jennifer is known for direct questions.
02:38Now, in a statement, a spokesperson for Kodak says that Kodak is confident it will be able to pay off a significant portion of its term loan well before it comes due
02:49and amend, extend, or refinance remaining debt and or preferred stock obligations.
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