The spokesman said the inspector general was looking into why the Rochester, New York-based company was chosen for the loan and “whether Trump administration officials involved in the award had conflicts of interest and the impact of Kodak`s lobbying.” Kodak shares rose more than 1,000% last week after the loan was announced, causing a fall for executives, some of whom had obtained options the day before. Eastman Kodak Co. received a $765 million government loan under the Defense Production Act, the first of its kind. The goal: to help accelerate domestic production of drugs that can treat a large number of diseases and to ease U.S. reliance on foreign sources. The U.S. Securities and Exchange Commission is also reviewing the disclosure of the July 27 credit agreement, which resulted in a 25% increase in Kodask`s stock that day. (Reuters) – Eastman Kodak Co`s $765 million loan with the U.S. government for the manufacture of pharmaceutical ingredients has been suspended following “recent allegations of misconduct,” according to information from the U.S. International Development Finance Corp (DFC). President Donald Trump said Tuesday that the government will investigate the circumstances of the loan announcement, which will help the photographic equipment maker produce pharmaceuticals at its U.S. plants. Kodak is facing a request from the United States International Development Finance Corp., the federal authority, to extend a $765 million loan for the production of active substances, the Wall Street Journal reported Monday.
The loan came from the U.S. International Development Finance Corporation, a government agency that resembles a bank, officials said. The loan is the first of its kind under the Defense Production Act, which the Trump administration has previously used to accelerate production of stocks related to Covid 19, such as fans. Mr. Trump held a press conference for the loan on Tuesday. “It`s a breakthrough to bring pharmaceutical production back to the United States,” he said. The president said that Kodak will not only produce ingredients for generic drugs, but will also produce basic materials “that are the building blocks of many drugs in a way that is both cost-effective and environmentally friendly.” Earlier this week, senior democratic lawmakers called on federal regulators to investigate the securities transactions of the company and its executives when it learned it could obtain a loan from the state.