Kodak stock dives 30% after $765 million loan is put on hold

Kodak stock plunged 30% Monday after a $765 million loan from the US government to help make drug ingredients was put on hold, as regulators are reportedly looking into allegations of insider trading.

Posted: Aug 11, 2020 9:31 AM
Updated: Aug 11, 2020 9:31 AM

Kodak stock plunged 30% Monday after a $765 million loan from the US government to help make drug ingredients was put on hold, as regulators are reportedly looking into allegations of insider trading.

The stock was temporarily halted after plunging as much as 43% earlier in the day.

"Recent allegations of wrongdoing raise serious concerns," the US International Development Finance Corporation said in a tweet Friday afternoon. "We will not proceed any further unless these allegations are cleared."

The DFC's announcement came a few days after questions arose about heavy trading volume for Kodak's stock, which soared as much as 2,757% following the initial July 29 announcement.

Kodak executives including CEO Jim Continenza are also facing criticism for receiving stock options on July 27, a day before the loan announcement.

White House Press Secretary Kayleigh McEnany on Monday would not say whether President Trump will pull the plug on a recent deal with Kodak, but said he takes allegations of insider trading against the company "very seriously." She added that the president has "strong faith in the process" and that the administration will not proceed until the allegations are cleared.

Last week the Wall Street Journal reported the Securities and Exchange Commission is investigating why Kodak announced the loan on the day prior to the official announcement, which sent shares 25% higher. The Journal said a local TV station in Kodak's home of Rochester, New York, published a media advisory about the upcoming announcement, adding that the station had not been given an embargo on the news.

The $765 million loan was meant to launch Kodak Pharmaceuticals, which will produce generic active pharmaceutical ingredients to reduce America's dependency on foreign drug makers. The company would hire some 350 workers, most in New York state, and create approximately 1,200 indirect jobs.

Kodak didn't immediately respond for comment.

New York Coronavirus Cases

County data is updated nightly.

Cases: 2729595

Reported Deaths: 57534
CountyCasesDeaths
Kings35008110971
Queens32689410411
Suffolk2554533688
Nassau2261353332
Bronx2133646806
New York1767984665
Westchester1481672356
Erie1248032050
Monroe976581253
Richmond928091973
Orange62183944
Onondaga59393818
Rockland55509783
Dutchess37964510
Albany34399413
Oneida33196643
Niagara28724419
Broome28212434
Saratoga24658225
Schenectady19328245
Ulster19063291
Rensselaer17411193
Chautauqua14985195
Oswego14170135
Putnam13145101
Chemung12834175
St. Lawrence12815143
Steuben12484190
Ontario11683119
Jefferson11388106
Wayne10251103
Cattaraugus9983157
Cayuga9729113
Sullivan958890
Genesee8633144
Herkimer8312143
Clinton809948
Fulton7854115
Tompkins741461
Madison7365109
Warren730096
Livingston722176
Montgomery7191162
Washington668580
Tioga634473
Cortland609489
Allegany5988122
Columbia5693113
Chenango554795
Orleans549496
Franklin541526
Otsego537063
Wyoming530266
Greene493189
Delaware439951
Lewis420340
Seneca324567
Essex298438
Schoharie268124
Yates198534
Schuyler193320
Hamilton5133
Unassigned1432
Out of NY0339
Utica
Cloudy
38° wxIcon
Hi: 36° Lo: 26°
Feels Like: 32°
Oneonta
Cloudy
33° wxIcon
Hi: 36° Lo: 26°
Feels Like: 24°
Herkimer
Cloudy
38° wxIcon
Hi: 37° Lo: 26°
Feels Like: 32°
Old Forge
Mostly Cloudy
38° wxIcon
Hi: 32° Lo: 23°
Feels Like: 32°
WKTV Radar
WKTV Temperatures
WKTV Severe Weather
2022 WKTV Golf Card only $99.99
Game Day Deals - New Deals Each Week
Stuff the Bus Locations
Saluting Those Who Are Proud 2 Serve