(MENAFN) US Bankruptcy Court in Manhattan has approved a framework of a plan by Eastman Kodak Co to restructure as a commercial imaging business, Reuters reported.
Now its up to creditors to vote on the plan in the coming weeks, referring to the so-called disclosure statement.
Before Kodak can exit bankruptcy, its restructuring plan must be supported by creditors, and the plan must go before Judge Allan Gropper of the US court for a final sign-off. That hearing is expected to take place on August 20.
Kodak went bankrupt in January of 2012 because of high pension costs and after falling many years behind rivals in embracing digital technology in its photography business.
The company has sold many assets as it seeks to emerge from Chapter 11 as a mainly commercial imaging-focused enterprise.
Kodak also plans to implement a USD406 million rights offering, selling 85 percent of the equity in the reorganized company, as it seeks to use proceeds to repay various creditors, including more junior second-lien creditors that would no longer receive equity in the reorganized company.
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