The U.S. International Development Finance Corporation said by Tweet Friday evening that it’s putting the $765 million Kodak loan on hold…pending investigations by federal authorities and by Kodak itself.
DFC signed a letter of intent last month to fund a Kodak operation designed to produce the chemicals needed for generic pharmaceutical production at Eastman Business Park and at a Kodak facility in St Paul, Minnesota. It was part of a federal effort to return the production of prescription drugs to this country from India and China.
But stock activity prior to the formal announcement led to questions of possible insider trading as Kodak stock boomed suddenly. The DFC statement says this raises major concerns and it cannot proceed with the deal until those allegations are cleared.