Kodak shares plunge 40% after US govt blocks $765-million loan deal

Shares of Eastman Kodak Co fell about 40 per cent on Monday and were on track for their worst single-day decline after the US government blocked a $765 million loan to the company, which was going to make drug ingredients for use in possible Covid-19 vaccines, because of "alleged wrongdoing" by executives.
 

The US International Development Finance Corp (DFC) was slated to grant the loan to Eastman Kodak, which is looking to move deeper into the pharmaceutical arena.
 

But alarms were raised after senior Democratic lawmakers asked federal regulators to investigate securities transactions made by the company and its executives around the time it learned it could receive the government loan.
 

US President Donald Trump said last week the government would investigate the circumstances surrounding the announcement of the loan.