The company said that it will seek court approval for a $406 million rights offering that could give creditors a big equity stake in the company after it emerges from protection. Kodak said creditors agreed to backstop an offering that would let the iconic company issue 34 million common shares at $11.94 each, equal to about 85 percent of the equity of a reorganized company.

Kodak Chief Executive Antonio Perez said: "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 has said it wants to emerge from Chapter 11 in the third quarter of this year.

Proceeds from the rights offering would go to repay various creditors, including more junior second-lien creditors who would no longer receive equity in the reorganised company. Kodak sought protection from creditors in January 2012 amid high pension costs, and after falling many years behind rivals in embracing digital technology in its photography business.

The company has been selling off its assets and plans to emerge from Chapter 11 as a commercial imaging business.