Big-name firms including KKR, Cerberus Capital Management LP, Providence Equity Partners and Wilbur Ross Jr.

WSJ: Private-Equity Firms Forced to Evolve

Lone Star Funds and Cerberus Capital Management LP already have purchased portfolios of defaulted home loans from struggling banks.

WSJ: In Spain, a Property Bargain-Hunter's Dream

Kodak has also held discussions with bondholders and a group led by investment firm Cerberus Capital Management LP about a bankruptcy financing package, the people said.

WSJ: Kodak Preparing for Chapter 11 Filing