Eastman Kodak Shares (KODK) – Get the Eastman Kodak Company Report jumped more than 75% in trade on Monday after federal regulators reportedly found no wrongdoing in the process that created a loan for the company to produce ingredients made in drugs.
Citing a copy of the appraisal it said it looked at, the Wall Street Journal reported that the inspector general of the US International Development Finance Corp., which negotiated the $ 765 million loan deal, has said he found no evidence that agency employees had conflicts of interest in the plans, and found no fault on the part of agency officials.
Specifically, the Journal said the Inspector General found no evidence that agency employees had conflicts of interest in the plans, nor “any evidence of misconduct on the part of DFC officials.” .
Kodak shares rose almost tenfold in July after the Rochester, New York-based company revealed he had received a loan of $ 765 million to manufacture Covid-19 drug equipment as part of a government program.
Kodak, which switched from manufacturing films and now obsolete chemicals for shooting to developing various materials and chemicals used for different types of products, including drugs, received the loan in July under of the Defense Production Act to reduce the United States’ dependence on drugs manufactured abroad.
Kodak shares surged in July after the company announced the loan, which it said it would use to make ingredients for generic drugs, including the antimalarial drug hydroxychloroquine that President Trump and others took as treatment for Covid-19, then dropped dramatically in August after the the government withdrew it and the Securities and Exchange Commission has launched its own investigation into insider trading.
Monday’s findings corroborate similar findings by a law firm hired by Kodak over allegations, which concluded last September that the chemicals company mismanaged an option grant to CEO Jim Continenza, but did not break the law.
Law firm Akin Gump Strauss Hauer & Feld said in September that while Kodak’s general counsel had not properly briefed the board of the potential pitfalls of the government loan, otherwise it didn’t do anything wrong.
Kodak shares rose 57% to $ 11.84 on Monday.