A disclosure statement explains how Kodak plans to pay off its creditors and what its business will look like after bankruptcy. Creditors have to vote on it before Kodak can move forward, but there are many who are stepping up to the plate with concerns.
"It is not uncommon in these mega cases for the first round to have a lot of objections that may not be serious objections. Also an opportunity with serious objections, really serious objections, really serious attorneys, the U.S. trustee has weighed in," retired bankruptcy judge John Ninfo said.
Former judge Ninfo says some concerns are eliminated before the hearing.
"There are valid objections clearly and they usually are resolved," he said.
He also says some objections come from people unaware of the process.
"It's really [a matter of] do you have adequate information that you can make an informed judgement as to whether you can vote yes or no for the plan that Kodak is proposing," he said.
According to court documents, Kodak plans to cancel its current stocks and re-issue new stocks. A majority of those will go to second-lien holders. It was not identified how much money would go to unsecured creditors, which are owed as much as $2.2 billion. Not everyone who objects gets the vote on the plan. That role will go to the creditors owed money. Once the disclosure statement is voted on, which Ninfo said can take between 30 to 60 days, the court can proceed to confirm Kodak's emergence plan.
Kodak had said it could get out of bankruptcy as soon as July. The next hearing is set for June 25th.