“Recent allegations of crime have raised serious concerns,” the U.S. International Development Finance Corporation said in a statement tweetje Friday afternoon. “We will not proceed unless these allegations are dispelled.”
The DFC’s announcement came a few days after questions arose about heavy trading volume for Kodak’s share, which rose as much as 2.757% after the first announcement on July 29.
Kodak executives including CEO Jim Continenza are also under criticism over receiving stock options on July 27, a day before the loan was announced.
Last week, the Wall Street Journal reported that the Securities and Exchange Commission was investigating why Kodak announced the loan on the day before the official announcement, which sent shares 25% higher. The Journal said that a local TV station in the home of Kodak of Rochester, New York, published a media opinion on the upcoming announcement, adding that the station did not receive an embargo on the news.
The $ 765 million loan was intended to launch Kodak Pharmaceuticals, which will produce generic active pharmaceutical ingredients to reduce America’s dependence on foreign pharmaceutical manufacturers. The company would hire about 350 workers, mostly in New York State, and create about 1,200 indirect jobs.
Kodak did not immediately respond to a request for comment.
.
