According to SEC documents, Kodak CEO Jim continenza acquired a large stake before the loan announcement. Kodak said it was a coincidence when executives bought shares, and continenza had not sold any Kodak shares during his tenure.
U.S. Democratic Senator Elizabeth Warren believes that executives are involved in insider trading by buying shares before major news is announced. Warren said:
The transaction of Kodak executives has not been publicly disclosed in advance, which is likely to involve insider trading of one or more persons, or disclose the material non-public information of loans related to the national defense production law without authorization.
At present, Kodak has appointed independent directors of the board of directors to set up a special group to conduct internal review on suspected insider trading of senior executives. Kodaks share price fell 32% in the past five trading days due to the news of loan shelving.
On Friday night local time, DFC said on social media:
DFC is the development financial institution of the federal government of the United States, which is mainly responsible for providing and promoting the financing of private development projects in low - and middle-income countries. The independent agency was first authorized on October 5, 2018 and was formed on December 20, 2019 by merging the overseas private investment company (OPIC) with the development credit agency of USAID, as well as several smaller offices and funds. In addition, DFC has a total borrowing capacity of $60 billion.
U.S. President trump said on Tuesday that the government will investigate the loan statement, which will help the photographic equipment manufacturer shift to producing drugs at its U.S. plant.
This loan is also the first loan in this field since the outbreak of the new crown, after the entry into force of the US defense production act. According to trumps original plan, Kodak will turn to produce a variety of generic pharmaceutical raw materials including hydroxychloroquine in the future. After the loan news, Kodaks share price soared more than 1000%.