What happened
statement
let freed. “data-reactid =” 21 “>” On July 28, we signed a Letter of Interest with Eastman Kodak. Recent allegations of misconduct have caused serious concern, “the United States International Development Finance Corporation said in a statement statement light Friday.“We will not proceed unless these allegations are dispelled.”
The independent federal agency had signed a letter of intent with the former photography giant for the loan, which was used to make medicines in short supply in the country.
Why it matters
Kodak is reportedly facing an investigation by the US Securities and Exchange Commission into its July 27 loan, which caused the company’s shares to rise 25% on the same day.
The commission is also said to be looking at stock options granted to Kodak executives, including the company’s CEO Jim Continenza, according to the Wall Street Journal.
The CEO was given options on 1.75 million shares, a day before the loan was announced, of which a quarter was paid on the day the loan was granted.
Kodak announced an internal investigation Friday to look into issues related to the controversial government action.
Price action
Kodak shares fell nearly 7.6% to $ 14.88 on Friday and deviated another 0.54% in the session after hours.
