A shareholder of Eastman Kodak has urged its board to sell the company due to worries about its financial condition, sending the stock up 7 percent.

Investment Partners Asset Management, which owns Kodak convertible bonds and about 220,000 shares, said on Thursday that it wrote to the company's board to ask it to take immediate steps toward a sale.

The shareholder criticized Kodak's management and called on large shareholders to use their rights push for changes.

The statement came days after Kodak shares hit a 38-year low as investors fled after the company drew down a credit line by $160 million, raising concerns about cash flow generation and its ability to compete.

Kodak shares were up 11 cents, or 7.1 percent, at $1.66 in afternoon New York Stock Exchange trading.