Kodak Stock Dives to 38-Year Low After the Company Borrows $160 Million

Yesterday Kodak’s stock fell 64 cents, or 26.9%, to close at $1.74 — the lowest the stock price has been in 38 years. Investors were reacting to news that the company (which hasn’t netted a profit since 2007) had taken out a new $160 million loan. The plummeting value of the company is bad news for the photography pioneer but good news for companies that might be interested in buying it — a list that is rumored to include Google and Microsoft.

Kodak shares hit 38-year low on borrowing concerns [Reuters]

Update: Reader Christian Rudman points out that the reason for the loan wasn’t because Kodak’s cash reserves had run out. They last reported having nearly $1 billion on hand on June 30th.

  • Christian Rudman

    You should point out that they still have a significant amount of cash in the company. Who knows as to why they were borrowing an additional $160 million, but Kodak reported today that as of June they had close to $1 Billion in the coffers. I am curious as to why they are borrowing money, but they still seem to be on their feet.

  • Michael Zhang

    Good point. Done :)