Eastman Kodak Co. has held discussions with several hedge funds about providing roughly $900 million in rescue financing that would bolster the imaging company's finances while it tries to sell a trove of patents, people familiar with the matter said.

Since about mid-September, Kodak has held discussions with Cerberus Capital Management LP, Silver Point Capital LP, Centerbridge Partners LP and Highbridge Capital Management LLC, the people said.

The discussions are preliminary, and it remained unclear whether they would lead to a deal, the people said. Rochester, N.Y.-based Kodak hasn't yet negotiated details of the possible financing, one of the people said.

Kodak declined to comment on specifics of any new financing, but a spokesman said, 'As a matter of course, we are always assessing the financing strategies available to us.'

The discussions suggest Kodak is concerned about shoring up its cash position as it tries to sell a portfolio of 1,100 patents and complete a challenging transformation from a company reliant on a dying film business to a seller of consumer and commercial printers.

The company prompted concerns over whether it had enough cash to support a turnaround when it drew down part of a credit line in September. The company's stock also took a hit when news broke earlier this month that it had hired law firm Jones Day for restructuring advice. Kodak also has hired turnaround firm FTI Consulting Inc.

News service Debtwire reported talks with some of the hedge funds over rescue financing on Friday.

The $900 million in new funds could be used to pay down Kodak's existing senior debt, with the remaining money strengthening the company's cash coffers, the people familiar with the matter said. Kodak has $160 million outstanding under a $400 million credit line.

Financing could bolster Kodak's leverage in negotiations with potential buyers, giving it time to negotiate a better price rather than be forced to sell the patents immediately to garneradditional cash, the people said.

Financial adviser Lazard Ltd. started marketing the patents for Kodak in August. Even if an agreement is reached to sell the patents soon, it could take months for any deal to close.

Kodak had $957 million in cash at the end of June and hopes to reap more by selling its patents.

In discussions with one of the hedge funds, Kodak's bankers remained steadfast that they want the company to avoid filing for bankruptcyprotection, one of these people said.