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Kodak loan deal on hold after allegations


The U.S. International Development Finance Corp. says it is holding up a loan agreement with Eastman Kodak (NYSE:KODK) to produce drugs that could be used to fight the coronavirus until allegations of insider trading are cleared.

“Recent allegations of wrongdoing raise serious concerns,” DFC said late Friday in a tweet.

Last month, the government agency signed a letter of intent that could provide the former photography company a $765M loan to help pay for factory changes needed to make pharmaceutical ingredients in short supply in the U.S.

But last week, Democrat U.S. senators asked the SEC to investigate whether insider trading laws had been broken, citing “unusual trading activity” before the deal was announced, and the SEC reportedly has launched a probe.





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