Summary List PlacementKodak’s $765 million government loan is now under investigation by the very agency that helped create the deal.
The inspector general of the US International Development Finance Corp. told Sen. Elizabeth Warren the office is reviewing the sum, The Wall Street Journal reported on Monday.
Warren previously called on the Securities and Exchange Commission and the Pandemic Response Accountability Committee to investigate the Kodak loan.
The deal fell under intense scrutiny following its late July announcement and Kodak’s subsequent stock rally. The SEC is currently probing the company’s disclosure of the loan, and congressional committees are looking into the agreement between the Trump administration and Kodak.
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The very agency that helped grant Kodak a $765 million government loan is now investigating the deal following scrutiny from lawmakers and other offices.
The inspector general of the US International Development Finance Corp. told Sen. Elizabeth Warren on Thursday that the agency is conducting a review of the loan, a spokeswoman for the senator told The Wall Street Journal. Warren previously called for a probe of the deal, citing unusually high trading volumes of Kodak shares ahead of the loan’s public announcement.
The loan was intended to help Kodak produce drug ingredients for combatting the coronavirus pandemic. The DFC was tasked with lending to firms with projects related to the health crisis.
The White House’s announcement of the loan in late July boosted shares as much as 2,100% over the following two days. Kodak’s stock price has since erased most of the gains as bodies including the Securities and Exchange Commission and congressional committees look into the loan and the company’s related disclosures.
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Source:: Business Insider