There was no wrongdoing in the process of Eastman Kodak Company (NYSE: KODK) Receiving a $ 765 million federal loan for its foray into pharmaceuticals, the US International Development Finance Corp. reportedly concluded.
What happened: The DFC is the federal agency that initially granted the loan. According to the Wall Street Journal, DFC Inspector General Anthony Zakel shared his findings with Senator Elizabeth Warren (D-Mass.) last week.
Zakuul told Warren – who was among the most virulent critic of what it previously called a “massive fiasco of a deal” – that the DFC in its review found no conflict of interest for federal agency employees in the deal and that it did not There is no “evidence of misconduct on the part of DFC officials.”
The loan was sanctioned at the request of President Donald Trump in July this year.
The United States Securities and Exchange Commission has also been would have probed events surrounding the loan, including allegations of potential insider trading violations.
A spokesperson for DFC told the Journal: “The case is very clear and the IG’s independent review confirms that DFC followed its standard process, within its standard schedule, led by financial professionals. careers. “
Why is this important: It is not immediately clear whether DFC will go ahead with the loan.
One of Warren’s aides claimed that Zakuul’s assessment did not examine potential ties between the White House and other related parties with political backgrounds. The associate also raised some questions about the DFC’s procedures.
Zakel said the DFC limited the investigation internally and “did not examine the conduct of Kodak or non-DFC personnel.”
Kodak shares have experienced immense volatility since the loan announcement in July. Grant of stock options to Kodak CEO Jim Continenza a day before the loan announcement, as well as his purchase of a significant number of company shares prior to the loan raised eyebrows.
An independent committee appointed by Kodak’s board of directors in September concluded that there was no no violation of the law part of the Rochester-based photography company, but he reported concerns about corporate governance.
Continenza said in October that Kodak will advance with the generic drug ingredient manufacturing company even if the federal loan is not granted.
Price action: KODK closed on Friday up 4.5% at $ 7.53.
Photo by El Grafo on Wikimedia
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.