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Eastman Kodak Co’s $765 million (587 million kilos) loan agreement with the US authorities to provide pharmaceutical elements has been put on hold as a consequence of “recent allegations of wrongdoing,” the US International Development Finance Corp (DFC) stated.
Earlier this week, senior Democratic lawmakers requested federal regulators to analyze securities transactions made by the corporate and its executives across the time it realized it may obtain the federal government loan.
“Recent allegations of wrongdoing raise serious concerns,” DFC stated late on Friday in a tweet.
“We will not proceed any further unless these allegations are cleared,” the DFC stated. It was referring to a letter of curiosity it signed on July 28 with Kodak.
President Donald Trump on Tuesday stated the federal government would examine the circumstances surrounding the announcement of the loan, which is able to assist the photographic gear maker shift into making prescription drugs at its US factories.
Kodak shares surged greater than 1,000% final week after the loan was introduced, producing a windfall for executives, a few of whom had acquired choices at some point earlier.
Lawmakers stated they’d “serious concerns” concerning the transactions and requested the Securities and Exchange Commission to analyze the circumstances surrounding the matter. They cited rising considerations about insider buying and selling.
The firm stated it had appointed a particular committee of unbiased administrators of its board to conduct an inside evaluate.
“The internal review will be conducted for the Committee by Akin Gump Strauss Hauer & Feld LLP,” Eastman Kodak stated in a press release.
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