Chairman of U.S. Securities and Exchange Commission Jay Clayton on the recent stock crash of Kodak and Chinese companies listed on U.S. exchanges.
Eastman Kodak CEO Jim Continenza said Tuesday that “more work is needed” to secure a planned $ 765 million loan for major pharmaceutical supplies, days after the deal was held amid allegations of misconduct by company officials.
“Keep in mind that the announcement two weeks ago was only a letter of interest, signed for a potential loan,” Continenza said during Kodak’s second-quarter profit call. “More work is needed to bring this forward. The announced potential loan is about the ability to produce key starting materials and active pharmaceutical ingredients for essential generic medicines in this country and on a much larger scale. “
SEC Investigation of KODAK Announcement of $ 765M Loan
Kodak shares fell earlier this week after the US International Development Finance Corporation said the $ 765 million loan was to be saved amid accusations that “cause serious concern.” The Securities and Exchange Commission is investigating the company’s procedure for disclosing the deal, as well as shareholdings to Continenza and other top executives just hours before the loan was announced.
Earlier on Tuesday, the Wall Street Journal reported that a Kodak board member, George Karfunkel, donated $ 116 million to a religious non-profit organization on July 29, a day after the loan was announced. At present, shares in Kodak had reached the highest level since 2014.
KODAK CRASHES AS $ 765M LOAN PUT ON HOLD
Kodak declined to comment further on the deal. The company has launched an independent internal review in its handling of the potential government loan.
| Ticker | Security | Last | Change | Change% |
|---|---|---|---|---|
| KODK | EASTMAN KODAK CO. | 10.01 | -0.72 | -6.71% |
The company did not answer any questions during its call for earnings.
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White House Press Secretary Kayleigh McEnany said President Trump “took the allegations of abuse” very seriously, adding that the loan would not continue until the allegations were removed.
Kodak reported a second-quarter loss of eight cents per share. Quarterly revenue was $ 213 million, down from $ 307 million in the same period a year ago.
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