Eastman Kodak said it reached a $793 million financing deal with its bondholders, noting that the financing is a key element in enabling the troubled photographic equipment maker to emerge from bankruptcy in the first half of 2013. However, the deal needs to be approved by the bankruptcy court at a hearing in December and is contingent on Kodak's achievement of certain milestones.

Central to the deal, Kodak must complete of the sale of its digital imaging patent portfolio for at least $500 million. Kodak has been struggling to sell its non-core assets to stay afloat and to transform itself into a digital company from being a film photography company.

Kodak, which filed for bankruptcy in January, entered into a commitment letter to secure $793 million in junior debtor-in-possession financing from Centerbridge Partners, GSO Capital Partners, UBS AG and JPMorgan Chase.

The financing is comprised of new term loans of $476 million and term loans of $317 million issued in a dollar-for-dollar exchange for amounts outstanding under Kodak's pre-petition second lien notes. In addition, the commitment letter contains provisions that will enable the conversion of up to $567 million of the loans into "exit financing", provided that Kodak meets certain conditions.

Read Kodak's press release on the financing agreement.