The company said it 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 payments in exchange for eliminating its current $1.2 billion liability for medical, dental, life insurance and survivor income benefits.
If the company is exposed for $1.2 billions and it pays $657.5 millions it should be around half of the total liability that the company is going to honour.
Maybe that only covers health care performances that have already been provided? I don't understand the use of "claims" here but it could be that the article was imprecisely worded. I infer this from the fact that the "liabilities" amount to $1.2 and I suppose that "liabilities" are exactly the total amount of the "promise" at today value. In that case, half of that would be paid or this is what I understand so far.
PS I see now that MattKing in post #6 reasons the same way. It's about half the promise which is being paid, and considering it's a dire situation at Kodak, half might be a bargain.