US delays $765M drug manufacturing loan to Kodak

The U.S. is placing a $765 million loan to Kodak to produce active pharmaceutical ingredients on hold amid insider trading allegations, according to CNBC. 

Kodak, the photography company that invented the digital camera, and the U.S. International Development Finance Corp., signed an interest letter in July for the $765 million loan that would help the company move into drug development. 

The loan, made under the Defense Production Act, would also help Kodak pay for factory changes to make pharmaceutical ingredients in short supply in the U.S. 

But the U.S. International Development Finance Corp. said the loan will be paused until allegations of insider trading are cleared. 

"Recent allegations of wrongdoing raise serious concerns. We will not proceed any further unless these allegations are cleared," the agency tweeted last week. 

Filings with the SEC show that Kodak's executive chairman and a Kodak board member loaded up on shares shortly before the government deal was announced, according to CNBC.

Shares of the company plunged more than 42 percent  Aug. 10 after news of the insider trading allegations surfaced, according to CNBC.

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