The U.S.International Development Finance Corporation says its deal with Eastman Kodak is on hold...thanks to concerns raised over possible insider trading. The DFC signed a letter of intent last month to loan Kodak $765 million to produce pharmaceutical products in Rochester. But a surge in Kodak stock the day before the formal announcement was made has led the company to appoint a special committee to review how the process was handled.
A Tweet from the DFC reads: "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."
And Peter Navarro, who signed the deal on behalf of the DFC, Tweeted: "VERY disappointed last week’s great deal with Kodak tarnished by allegations. Absolutely RIGHT move by DFC!"