A group of bidders has offered Kodak more than $500 million for a number of its digital patents.

That according to sources quoted by the Wall Street Journal, which says that while a deal has not been reached yet, it does put Kodak a step closer to getting out of bankruptcy.

Last month Kodak struck a deal with creditors for $830 million in loans, but that is based on Kodak selling the patents for at least $500 million.

The auction process began with two competing groups looking at the assets, but according to the Journal they  combined into one group that is eventually expected to buy the patents.