What happened
Shares of Eastman Kodak (NYSE: KODK) fell 9.4% on Monday after White House Trade Adviser Peter Navarro did not exactly comment on how he feels about the company’s senior management.
So what
Navarro is clearly not happy with how Kodak handles announcements and other activities related to its $ 765 million loan Award for Defense Production Act. Kodak is reportedly under investigation by the Securities and Exchange Commission (SEC) for disclosures related to the loan, as well as possible activity for insider trading. The company’s board of directors also took the dubious decision to give Deputy Chairman Jim Continenza a sizable amount of Kodak share options shortly before the deal was announced.
“From what I see, what happened at Kodak was probably the dumbest decision made by executives in the company’s history,” Navarro told CNBC. “You can not repair stupid,” Navarro continued. “You can’t even anticipate that degree of stupidity.”
Eastman Kodak’s share fell after harsh remarks from White House trade adviser Peter Navarro. Image Source: Getty Images.
Well what
The loan was intended to help Kodak launch a new pharmaceutical listing company that would produce components that are critical in the fight against COVID-19. The Trump administration also wanted to reduce the country’s dependence on foreign manufacturers and strengthen its domestic pharmaceutical supply chain. Kodak would play an important role in this endeavor. Now, however, these plans have been placed on indefinite hold until Kodak is wiped out of all crimes. And judging by Navarro’s comments, it may take a while before Kodak actually gets the $ 765 million in financing, if at all.
