The U.S. International Development Finance Corporation (DFC) said Kodak’s $765 million drug loan agreement with the U.S. government had been shelved because of “recent allegations of misconduct,”media reported. Earlier this week, senior Democratic lawmakers asked federal regulators to investigate securities transactions conducted by the company and its executives before and after learning of possible government loans.
Late Friday local time, the DFC tweeted: “Recent allegations of misconduct by (Koda) have raised serious concerns. “
“We will not take further action unless these allegations prove innocent.” DFC indicates. The company was referring to a letter of intent signed with Kodak on July 28.
U.S. President Donald Trump said Tuesday that the government will investigate the loan announcement that will help the photomaker switch to producing drugs at its U.S. plant.
Kodak’s share price soared more than 1,000 per cent last week after the loan announcement, a windfall for company executives, some of whom had taken options a day earlier.
Lawmakers said they had “serious concerns” about the deal and asked the Securities and Exchange Commission to investigate the matter. They point to growing concerns about insider trading.
The company said it had appointed a special committee of independent directors for an internal review.
“The committee will be reviewed internally by Akin Gump Strauss Hauer and Feld LLP,” Kodak said in a statement.
According to previous reports, on August 4, local time, the Securities and Exchange Commission on Kodak information disclosure is suspected of violations have been launched an investigation. The investigation is in its infancy, with the focus on how Kodak disclosed its dealings with the government. (Hyun-Jin)