Chairman of the U.S. Securities and Exchange Commission Jay Clayton on the recent stock crash of Kodak and Chinese companies reported on U.S. exchanges.
(Reuters) – Eastman Kodak Co. increased U.S. government lobbying spending in the months before the Trump administration announced a $ 765 million loan to photographic equipment maker, public disclosures submitted to the show of the Congress.
The company spends $ 870,000 on “lobbying-related expenses” from April to June, according to the lobbying revelations.
KODAK CRASHES AS $ 765M DRUG INDUSTRY PIVOT PUT ON HOLD
Kodak had previously not spent any money on lobbying since spending less than $ 5,000 in the first quarter of 2019.
The company insists it was spending on lobbying facilities while investigating government support for the coronavirus outbreak.
| Ticker | Security | Last | Change | Change% |
|---|---|---|---|---|
| KODK | EASTMAN KODAK CO. | 9.72 | -0.29 | -2.90% |
With the launch of COVID-19, Kodak, like many companies across the country, explored federal support for the company and our workers, as well as opportunities to support the government, at state and federal level, in response to the pandemic. , ”A company spokesman said in an email.
“This includes our application for a federal loan to support the launch of Kodak Pharmaceuticals with the intention of supporting the domestic response to COVID-19,” the statement added.
This file photo from 25 jan. 2011 shows a Kodak slide projector in Philadelphia. (AP photo / Matt Rourke, file)
The increase in Kodak’s lobbying efforts was previously reported by Bloomberg.
Kodak’s $ 765 million loan deal with the U.S. government to produce pharmaceutical ingredients was suspended Friday due to “recent allegations of traffic”.
Last week, senior Democratic lawmakers asked federal regulators to investigate securities transactions made by the company and its executives around the time it learned it could get the loan. They mentioned concerns about insider trading.
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Kodak said on Tuesday investigations by Congress and the Securities Exchange Commission have begun, and could affect the outcome of the loan.
The company also said it expects sales volumes and working capital to improve in the current quarter after reporting a 31% decline in quarterly revenue due to the pandemic.
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