- House Democrats have launched an investigation into Kodak and the government office that issued it a potential $765 million loan to shift to drug production.
- House Financial Services Committee Chairwoman Maxine Waters is among democratic leaders who on Wednesday sent a letter asking the US International Development Finance Corporation for all communications concerning the Kodak loan.
- Democratic leaders also sent a letter to Kodak CEO Jim Continenza Tuesday, The Wall Street Journal reported Wednesday.
- The investigation comes a day after the Securities and Exchange Commission launched its own probe into the Kodak announcement, following prompting by Senator Elizabeth Warren.
- Watch Kodak trade live on Markets Insider.
- Read more on Business Insider.
A group of House Democrats have launched an investigation into Eastman Kodak’s potential $765 million loan from a government agency.
In a letter released Wednesday, Democratic leaders including House Financial Services Committee Chairwoman Maxine Waters asked the US International Development Finance Corporation, the agency responsible for the loan through the Defense Production Act, for all communications about the loan.
The group also questioned why the government office would support Kodak, “an organization that was on the brink of failure in 2012 and was unsuccessful in its previous foray into pharmaceutical manufacturing, in its efforts to develop the capacity to produce up to 25 percent of domestic pharmaceutical components.”
On July 28, the Trump administration announced that it planned to give Kodak the first-of-its kind loan to help the photography company switch to drug production.
Shares of the company skyrocketed as much as 2,190% in two days following the announcement. In addition, the company's more than 20% uptick a day before the loan was announced drew controversy due to stock options granted to CEO Jim Continenza and other executives.
The House investigation comes just one day after the Securities and Exchange Commission launched its own investigation into the trading of Kodak following its irregular stock movement around the announcement of the loan.
The SEC probe was urged by Sen. Elizabeth Warren, who wrote in a Monday letter that "this is just the latest example of unusual trading activity involving a major Trump administration decision."
In a Tuesday letter to Continenza, the same group of Democratic leaders addressed concerns about the company's lack of pharmaceutical experience and the stock options granted to executives before the loan was announced, The Wall Street Journal reported Wednesday.
Eastman Kodak has surged more than 217% year-to-date.
