Kodak is seeking court approval for a $406 million rights offering which would equal roughly 85 percent of the firm after leaving bankruptcy protection.
The Rochester, New York-based company said that creditors have agreed to support an offering worth $406 million based on 34 million common shares at $11.94 each. If approved by U.S. Bankruptcy Court, then the offering will equate to 85 percent of the company once it leaves Chapter 11 bankruptcy protection, according to Reuters.
"This agreement, which serves as a critical component of the capital structure for the emerging Kodak, positions us to comprehensively settle our obligations with our various key creditor constituencies," Kodak Chief Executive Antonio Perez said in a statement.
Kodak hopes to come out of Chapter 11 in Q3 this year.
The firm entered bankruptcy proceedings which included creditor protection last year amid high pension costs and falling profits after failing to jump in to the digital photography market as quickly as its rivals. Since coming under Chapter 11 (which allows U.S. firms to reorganize business affairs and assets and 'start again' as long as restructuring conditions are met), the photography firm has sold a number of assets to pay off debts.
In April, Kodak announced plans to sell off its Document Imaging unit to printing solutions provider Brother, which will pay roughly $210 million for the division. The business includes scanners, capture software and services aimed at the enterprise market. However, Brother will also assume deferred service revenue liability of $67 million through the transaction.
In January, courts approved the sale of 1,100 Kodak patents to a number of technology giants including Apple, Google and Microsoft. The collection sold for $525 million, a disappointing result based on the portfolio's reported value of $2.5 billion.
Kodak has disclosed plans to remerge as a commercial imaging business while settling with $2.8 billion in claims made by Kodak's largest creditor, the U.K. Kodak Pension Plan.