By Dean Seal
Shares of Eastman Kodak surged after the company said it may terminate its U.S. pension plan and sold off some of the plan's assets.
The stock rose 27% to a high of $6.70 in early trading. Shares haven't traded this high since August 2022.
Before the bell, the company said its board has instructed the committee managing Kodak's retirement fund assets to prepare the corporate pension for a potential termination.
The pension plan is overfunded from strong market gains and significant contributions Kodak made back when it was a household name in print photography.
Kodak has struggled to find its footing as photography has largely gone digital. It had $214 million in cash on its balance sheet as of Sept. 30.
The company said it expects to book between $530 million and $585 million in after-tax cash gains from a series of moves such as selling illiquid assets held by the plan, settling liabilities and replacing the plan with a new one for employees.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
November 25, 2024 10:58 ET (15:58 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
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