Kodak's $765 Million Government Loan on Hold Pending Probe

[Nevilledog]

https://www.bloomberg.com/news/articles/2020-08-08/kodak-s-765-million-government-loan-on-hold-pending-probe


The federal agency that announced a $765 million loan to Eastman Kodak Co. less than two weeks ago said the offer is on hold pending probes into allegations of wrongdoing.

“Recent allegations of wrongdoing raise serious concerns,” the U.S. International Development Finance Corporation said in a tweet Friday night. “We will not proceed any further unless these allegations are cleared.” Congress and the Securities and Exchange Commission are investigating the deal, and Kodak’s board said Friday it is also opening a review of the loan disclosure.

The development bank loan announced July 28 was the first of its kind under the Defense Production Act in collaboration with the U.S. Department of Defense. It was intended to speed production of drugs in short supply and those considered critical to treat Covid-19, including hydroxychloroquine, the controversial antimalarial drug touted by President Donald Trump.

The president, along with New York Governor Andrew Cuomo and White House aide Peter Navarro pitched the loan as a way to rebuild America’s pharmaceutical manufacturing infrastructure while restoring a beleaguered Rochester, New York-based camera company.

*snip*

[Me.]

1. For Once A Grift Is Stopped In Its Track

[Hoyt]

2. They don't need the loan now unless the contract is revoked. They can sell some stock to finance

ramping up their pharmaceutical chemical section.