I guess we now know why the white house didn't want to share what businesses got sweet PPP loans
- Thread starter TommyCracker
- Start date
‘Serious Concerns’ Put Trump’s Much-Hyped Kodak Pharmaceuticals Plan On Hold
President Trump’s highly publicized $765 million plan to turn filmmaker Eastman Kodak Company into a pharmaceutical maker is on hold, unless the storied company can clear up “serious concerns”—possibly sparked by a big jump in Kodak’s stock price and a stock deal for the company’s top executives —according to a pair of tweets from a federal agency.
KEY FACTS
The U.S. International Development Finance Corporation said July 28 it planned to sign a letter of interest to provide a $765 million loan to the creator of the “Kodak moment,” to support the launch of Kodak Pharmaceuticals, a new arm of the company designed to produce critical pharmaceutical components, in part to reduce the nation’s reliance on foreign drug sources during the Covid-19 pandemic.
Shortly after the deal was announced, questions were raised after the company’s share price shot up; it was reported that stock-option grants were made to executives and board members, including the chief executive, before the deal was announced, according to the Wall Street Journal.
In a tweet Friday, the DFC said “recent allegations of wrongdoing raise serious concerns,” adding, “we will not proceed any further unless these allegations are cleared.”
The company, which declined to comment Saturday, on Friday announced in a news release that it was appointing a “special committee of independent directors … to oversee an internal review of recent activity by the company and related parties” in connection with the potential loan.
Senator Elizabeth Warren (D- Mass.) sent a letter asking the U.S. Securities and Exchange Commission to investigate whether insider trading laws have been broken, according to CBS News.
The July news release announcing the proposed deal noted that the letter of interest was being signed “at the direction of President Donald J. Trump,” and would “mark the first use of new authority delegated by President Trump’s recent executive order that enables DFC and the U.S. Department of Defense” to work together to bolster the domestic response to Covid-19 under the Defense Production Act.
President Trump’s highly publicized $765 million plan to turn filmmaker Eastman Kodak Company into a pharmaceutical maker is on hold, unless the storied company can clear up “serious concerns”—possibly sparked by a big jump in Kodak’s stock price and a stock deal for the company’s top executives —according to a pair of tweets from a federal agency.
KEY FACTS
The U.S. International Development Finance Corporation said July 28 it planned to sign a letter of interest to provide a $765 million loan to the creator of the “Kodak moment,” to support the launch of Kodak Pharmaceuticals, a new arm of the company designed to produce critical pharmaceutical components, in part to reduce the nation’s reliance on foreign drug sources during the Covid-19 pandemic.
Shortly after the deal was announced, questions were raised after the company’s share price shot up; it was reported that stock-option grants were made to executives and board members, including the chief executive, before the deal was announced, according to the Wall Street Journal.
In a tweet Friday, the DFC said “recent allegations of wrongdoing raise serious concerns,” adding, “we will not proceed any further unless these allegations are cleared.”
The company, which declined to comment Saturday, on Friday announced in a news release that it was appointing a “special committee of independent directors … to oversee an internal review of recent activity by the company and related parties” in connection with the potential loan.
Senator Elizabeth Warren (D- Mass.) sent a letter asking the U.S. Securities and Exchange Commission to investigate whether insider trading laws have been broken, according to CBS News.
The July news release announcing the proposed deal noted that the letter of interest was being signed “at the direction of President Donald J. Trump,” and would “mark the first use of new authority delegated by President Trump’s recent executive order that enables DFC and the U.S. Department of Defense” to work together to bolster the domestic response to Covid-19 under the Defense Production Act.
$765 million loan underwritten by taxpayers. That loan came after Kodak spent $870,000 on lobbying expenses.
This is a good job by Congress and regulators scrutinizing this deal.
Thanks for sharing. It is very strange that in the modern world we still have such concepts as corruption, illegal lobbying of the political interests of those people who have a lot of money. I think this is unfair. I recently read some essays on https://writingbros.com/essay-examples/business/ that are about business. The main problem of small business, which may be the basis for the middle class, is corruption and unfair play on the political Olympus.
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Does PPP stand for Prosperity Pastor's Paycheck replacement? Apparently, that's what Joel Osteen thought...
If these hucksters want to be bailed out like a business they should be treated like one across the board. Starting with taxes and discriminatory hiring.
Im glad you mention the Dallas mega church, assuming that its the same church that belongs to Joel Osteen. That church recieved a couple million dollars, which just blows my mind. I still dont understand how these churches are allowed to exist without paying taxes, and yet inexplicably they receive a huge amount of federal stimulus.
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