International Development Finance Corp. (DFC), the federal government agency that provides financial aid to private projects, has decided to block a 765 million dollar loan to the US multinational Kodak for the production of active pharmaceutical ingredients.
The agency said it had reopened loan assessment after "recent allegations of violations" related to the announcement of the government deal and guaranteed stock options to the chief executive James Continence.
In recent weeks, the loan has triggered a surge in the group's stock on Wall Street, which went from less than two dollars to 60 dollars in two days (it is now worth around 9), with earnings of over 600%. The loan would have been the first under the Defense Production Act, the law that aims to bring activities considered indispensable, such as pharmaceutical production, back to the United States.
Kodak, founded in 1888 and based in Rochester, in the state of New York, after being an icon of photography is trying to get out of the crisis by transforming itself into a pharmaceutical company.
President Trump who had praised the agreement commenting that "we will make America the leading producer and supplier of drugs in the world", said he was not involved in the loan issue.
Yahoo! finance (source ASKA News) – August 10, 2020
Ed.:
James V. Continenza's estimated net worth owned is at least $ $31.8 million as of June 23, 2020, pre-DFC settlement. Mr. Continenza owns over 46,737 shares of Eastman Kodak Co valued at over $ 21,105,500. Additionally, he earns $ 10,716,000 as Executive Chairman of the Board of Eastman Kodak Co. [source wallmine]. Of these $ 873,152 was received in cash, $ 9,830,503 as Equity (shares) and $12,375 was received as pension and other forms of compensation. This information is derived from proxy statements filed for fiscal year 2019.
Eastman Kodak Co CEO Jim Continenza added $ 79 million to his net worth Wednesday as his options in the company became very lucrative, thanks to a US government loan
Related news: Kodak, from photos to pharmaceuticals
