$765 Million U.S Loan Agreement With Eastman Kodak On Hold After Fresh Allegations Emerge

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Eastman Kodak Inc.’s $765 million loan deal with the United States federal government to create pharmaceutical ingredients has been stalled because of the new allegations that have emerged of wrongdoings.

Early this week, top congressional democrats requested the federal officials to further investigate the securities financing transactions that have so far been made by this company and its top management since it found out that it would be receiving the government loan.

The USA International Development Finance Corp  (DFC) has further reiterated that these new allegations are serious issues that should be investigated. The DFC said that they would not proceed until these allegations are formally investigated and cleared.

On Tuesday, President Trump said that his administration would thoroughly evaluate the issues surrounding the loan agreement. This will be of great help to the photographic equipment manufacturers shift into producing pharmaceuticals at their US factories.

Kodak shares rose over 1000% last week after this loan was announced, creating a windfall for the top executives, most of which had already received the options a day before.

Policymakers stated that they had serious concerns regarding these transactions and requested that the Securities and Exchange Commissions investigate all the circumstances surrounding this issue. One of their major points of reference was insider trading.

The company further stated that they had appointed a team of independent directors of the board to carry out the internal review as The University of Washington predicts 300,000 USA Coronavirus Fatalities.

The development loan that was announced two weeks ago was the first of the kind within the Defense Production Act in line with the USA DoD (Department of Defense). The load was supposed to speed the production of the much-needed drugs in the short supply and those largely considered to be critical in treating coronavirus, including Hydroxychloroquine, an antimalarial drug that President Trump has been touting.

Peter Navarro, a top White House Aide along with the New York Governor and President Trump said that the loan was a great way to restructure the US pharmaceutical manufacturing sector and restore the beleaguered Rochester, a reputable US-based camera enterprise.

As mentioned earlier, news about this loan sent the company’s stocks soaring over 1000%. Nonetheless, the loan agreement has received lots of scrutiny. Technically, corporate disclosures indicated that Kodak board members had bought more shares prior to this announcement. This happened as analysts wondered whether the company was sufficiently equipped for large-scale pharmaceutical production.

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