On July 28, we signed a Letter of Interest with Eastman Kodak. Recent allegations of wrongdoing raise serious concerns. We will not proceed any further unless these allegations are cleared.
— DFCgov (@DFCgov) August 7, 2020
Since the announcement of an investigation, Kodak has launched their own internal review to look into the loan deal. It is unknown whether an internal investigation will bear any fruit, or if this is simply a PR move to save face.
White House economic advisor Peter Navarro commented on the situation by applauding DFC’s decision to halt negotiations, claiming he was “VERY disappointed last week’s great deal with Kodak tarnished by allegations.”
While insider trading allegations certainly make for bad PR, it remains to be seen whether any investigation will lead to legal action. Furthermore, the SEC has not announced any findings related to the matter.
There certainly is a chance that Kodak will walk away from the investigation unscathed. Until the investigation is completed, it appears the once-great imaging giant will be treading water.
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