Shares in Eastman Kodak fell by more than 25% after the iconic photography brand announced it was borrowing $160m for u2018general corporate purposesu2019.
In 2007, Kodak used explosives to demolish two buildings at its head office in the US. It said the buildings were no longer needed following the move to digital
Fears grew over Kodak?s future as its share price dropped almost 27%.
The news comes as the firm continues to struggle to make a profit, and amid reported concerns about its ability to compete in the cut-throat digital camera market.
In July, Kodak reported a $179m second quarter loss from continuing operations, compared with a £167m loss on the same period in 2010.
The company blamed the rising cost of raw materials such as silver and aluminium, and ?investments to drive digital growth initiatives?.
Kodak currently has arrangements to borrow up to $400m, according to the Financial Times.
Kodak announced it was drawing on the credit line in a regulatory filing dated 23 September, which is published on the US company’s website.
In a press statement, Kodak said its cash flow is ‘highly seasonal’.
A spokesman said: ‘This revolving credit facility has been a part of Kodak’s cash-management tool kit for quite some time.’
He added: ‘We are a global company with the majority of our cash and revenues overseas.
‘For global cash-management reasons, we elected to draw on our revolver. And we are committed to meeting all our obligations.’
Earlier this year, Kodak would neither confirm nor deny a report that it planned to cut compact camera production in the wake of a 25% slump in revenue.
In 2007, Kodak declared that DSLR cameras were not worth making, as it pledged to focus on mass market compacts and post-capture products such as digital picture frames.
Four years ago, Kodak used explosives to demolish two buildings at its head office in Rochester, United States.
Bosses said the premises were no longer needed following the move to digital.