Kodak says that it has reached agreement in principle with a retirees committee to end its health care and survivor benefits by the end of the year.
The program includes medical, dental, life insurance and survivor income benefits.
As part of the settlement, Kodak will provide the retiree committee with a $7.5 million dollar payment to support the initial administration and benefit obligations, as well as 635 million dollars as part of an unsecured claim. There's also mention of a 15-million dollar administrative claim that would have priority in the bankruptcy proceedings.
It's not clear yet just how much additional benefit would be available to Kodak retirees in terms of health benefits after the end of this year.
The proposed settelment does not affect pension benefits.
Kodak CEO Antonio Perez says with this change, Kodak takes a major step forward toward the efforts to emerge from Chapter 11 next year.
A statement from EKRA, the association representing Kodak retirees, says it is disappointed it did not get a heads up about what it calls a "draconian result." (EKRA is different from the 'retirees committee' which is an official group that negotiates with Kodak over benefits)
The agreement still has to be approved by the U.S. Bankruptcy Court.