Kodak Restructuring Framework OK'd by Court, Will Go to Creditors

The framework of a plan by Eastman Kodak to restructure as a commercial imaging business was approved by a bankruptcy judge on Tuesday, bringing the former photography company one step closer to exiting from Chapter 11 protection.

Judge Allan Gropper in U.S. Bankruptcy Court in Manhattan said he was "happy" to green-light the so-called disclosure statement, which creditors will use as a reference when they vote on the plan in the coming weeks.

Kodak also plans to implement a $406 million rights offering, selling 34 million shares, or 85 percent of the equity in the reorganized company. Proceeds would go to repay