EK: No End in Sight

Eastman Kodak Company's (NYSE: EK) long-term outlook could not be more grim. S&P LCD reported this morning that EK has drawn on a large portion of its revolving credit facility (specifically, $160m draw out of $235m availability; $400m total ABL facility) for "general corporate purposes," namely to "bridge timing differences between cash inflows and outflows." CDS spreads blew up on the news--see frightening chart below.

Historical EK 5 yr CDS via CMA Datavision, in bps: