(Bloomberg) – The federal agency that issued a $ 765 million loan to Eastman Kodak Co. less than two weeks ago expert, said the offer is pending pending probes in traffic allegations.
“Recent allegations of crime have raised serious concerns,” the U.S. International Development Finance Corporation said in a tweet Friday night. “We will not proceed unless these allegations are dispelled.” Congress and the Securities and Exchange Commission are investigating the deal, and Kodak’s board said Friday that it will also open a review of the loan’s disclosure.
The development bank loan announced July 28 was the first of its kind under the Defense Production Act in partnership with the U.S. Department of Defense. It was intended to accelerate the production of drugs in short supply and those considered critical for Covid-19 treatment, including hydroxychloroquine, the controversial antimalarial drug administered by President Donald Trump.
The president, along with New York Governor Andrew Cuomo and White House Assistant Peter Navarro, made the loan as a way to rebuild America’s pharmaceutical manufacturing infrastructure by restoring a polite Rochester camera in New York. -based camera.
The news sent the stock up as much as 2,760%. Soon, however, the deal gained control. Corporate revelations showed that Kodak board members bought additional shares before the announcement. Analysts questioned whether Kodak was really equipped for large-scale pharmaceutical production. In an interview with Bloomberg following the announcement of the deal, the DFC said they had only signed a “letter of interest” and that the agency was still working on the deal.
A Kodak spokesman declined to comment for comment.
On Friday, the agency tweeted, “We continue to work with other government agencies to address critical deficits in America’s pharmaceutical supply chain.”
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