Published: Oct 10, 2012 9:15 PM EDT
Updated: Oct 11, 2012 6:31 AM EDT

ROCHESTER, N.Y. (AP) - Eastman Kodak Co. is asking a bankruptcy court judge to allow it to end retiree medical and other benefits at the end of the year as part of its restructuring.

The company says Wednesday it's reached an agreement with the court-appointed committee of retirees to pay a total of $650 million in claims and $7.5 million in cash into a fund that could be used for future retiree benefits in exchange for eliminating its current $1.2 billion liability for medical, dental, life insurance and survivor income benefits.

It says the benefits cost about $10 million monthly and the change is essential to emerging successfully from Chapter 11 protection. A hearing on the agreement has been scheduled for Oct. 29.

An association that represents about 5,000 Kodak retirees says it's disappointed by the proposal affecting 56,000 beneficiaries.