No Wrong Doing in Kodak Loan Process Says U.S. Agency
The Wall Street Journal reported on December 6th that a U.S. agency has concluded that there was no wrong doing involved in the U.S. government’s awarded of a $765 loan to Eastman Kodak to produce pharmaceuticals in the United States. The actual granting of the loan however remains suspended.
According to The Wall Street Journal: “The inspector general of the agency that brokered the deal, the U.S. International Development Finance Corp., provided his assessment last week to Sen. Elizabeth Warren (D., Mass.), who had called for the investigation after the one-time photo giant landed a potential $765 million government loan in July.”
In its review, the DFC found no conflict of interest for the employees of the federal agency and stated that there is no “evidence of misconduct on the part of DFC officials.”
Kodak’s granting of stock options to Kodak CEO and Chairman Jim Continenza and other investors a day before the DFC’s announcement of its intent to provide the loan raised suspicions of insider trading, as Kodak stock soared after the announcement.
For its part, Kodak maintains that it will continue with its plans to manufacture pharmaceuticals in the United States regardless of whether it ultimately obtains the loan. Additionally, the U.S. Securities and Exchange Commission is also in the process of reviewing the matter.
More Resources
- November 2020: Former Kodak Execs Make Millions via Unauthorized Stock Options
- September 2020: Law Firm Says No Insider Trading at Kodak
- August 2020: Government Puts Controversial $765 Million Kodak Loan on Hold
- August 2020: Securities & Exchange Commission Investigating Kodak
- July 2020: Kodak Slated to Begin U.S. Pharmaceutical Manufacturing