The meteoric rise, after which fall, of Eastman Kodak stock – and the recent profits scored by top executives there – is garnering more attention. House Democrats are actually considering a $765 million federal loan as well as trading activity by company executives before the loan was publicly announced.
The runup in stock prices was spurred by President Trump's invocation of the Defense Production Act – and, specifically, the fact that Kodak would obtain the $765 million loan to allow it to begin manufacturing a few of the things that understand into generic drugs. Kodak, obviously, has long been known for its camera and film business instead of pharmaceuticals.
According to some press release, Democrats in the U.S. House of Representatives have requested documents and information concerning the loan, that is funded through the U.S. International Development Finance Corp. (IDFC). They're also questioning Kodak's lack of experience using the pharmaceutical industry.
The Democrats – Rep. James E. Clyburn, chairman of the Select Subcommittee around the Coronavirus Crisis; Rep. Maxine Waters, chairwoman from the Committee on Financial Services; and Rep. Carolyn B. Maloney, chairwoman of the Committee on Oversight and Reform – sent letters to the head of IDFC and to James Continenza, Kodak's chairman.
The actions consume a probe into the loan through the U.S. Securities and Exchange Commission (SEC). Of particular interest towards the SEC is how Kodak controlled the release of information about the loan, that was acquired and reported on July 27, yesterday the state announcement, by Tv producers in the company's hometown of Rochester.
The day before the announcement, Kodak granted choices on 1.75 million shares – worth roughly $16 million – to Continenza, The Wall Street Journal reported.
On July 29, shares were up a lot more than 300 percent intraday, to a lot more than $26 a share.
The Congress members said the Kodak loan \”was the very first announced\” by the IDFC following a May 14 executive order authorizing it to make loans under the Defense Production Act in connection with the pandemic.
