Judge rejects Kodak shareholder request, creditors back reorganization plan

|By:, SA News Editor

U.S. bankruptcy judge Allan Gropper has rejected a bid by Eastman Kodak (EKDKQ.PK -15.9%) shareholders to have an official committee created to represent their interests.

The ruling clears the way for creditors to obtain court approval next Tuesday for Kodak's reorganization plan, which will result in equity seeing their shares cancelled. All classes of eligible Kodak creditors have voted in favor of the plan.

In defending the ruling, Gropper says there's no evidence creditors were "hiding value," and notes unsecured creditors may still only get 4-5 cents on the dollar.

Kodak shares fell to $0.101 on the pink sheets today.