The reorganization plan of Eastman Kodak Co., which became effective in September, created a trust to file lawsuits to generate cash for creditors, the Rochester (N.Y.) Democrat & Chronicle reported on Saturday. To kick off the process, the creditors’ trust sent almost 1,000 demand letters in November telling former suppliers they would be sued unless they voluntarily gave back so-called preferences, payments received within 90 days of bankruptcy. The trustee followed with lawsuits in January. Thursday, the trust had the bankruptcy court in Manhattan approve procedures to forestall filings that would otherwise deluge the bankruptcy court with papers in the preference suits. The trust and the defendant will share the mediator’s costs. For suits with less than $25,000 at issue, the shared cost is $1,000. The price rises on a sliding scale until it reached $3,000 for alleged preferences over $500,000.
