Following Committees’ Inquiry, Trump Administration Puts $765 Million Kodak Loan on Hold
Washington, D.C. (August 10, 2020) -- Today, Rep. James E. Clyburn, Chairman of the Select Subcommittee on the Coronavirus Crisis, issued the following statement after the Trump Administration announced it was putting a loan to Eastman Kodak Company on hold after Chairman Clyburn and other Committee chairs wrote to Kodak and the U.S. International Development Finance Corporation (DFC) requesting documents on the loan and the windfall received by Kodak executives:
“I am pleased that the Trump Administration put this $765 million loan to Kodak on hold after the House launched an investigation. Now, we need answers about why they planned to give a taxpayer-funded loan to manufacture drug ingredients to a company without pharmaceutical experience, and how Kodak executives acquired millions of dollars worth of stock and options at the same time they were negotiating this loan in secret. Given that the Administration admitted there are ‘serious concerns’ with the loan and said they ‘will not proceed any further unless these allegations are cleared,’ I expect both the Administration and the company will fully comply with the Committees’ document requests without delay.”
On July 28, President Trump announced a $765 million loan to Kodak to manufacture ingredients for domestic drugs needed in response to the coronavirus crisis. The President called the loan “one of the most important deals in the history of U.S. pharmaceutical industries” and “a historic agreement.”
On August 5, the Select Subcommittee on the Coronavirus Crisis, the Committee on Financial Services, and the Committee on Oversight and Reform sent a letter to Kodak seeking documents on “DFC’s decision to award this loan to Kodak despite your company’s lack of pharmaceutical experience and the windfall gained by you and other company executives as a result of this loan raise questions that must be thoroughly examined.” These Committees, along with the Committee on Foreign Affairs and the Committee on Financial Services, Subcommittee on Oversight and Investigations, also sent a document request on August 5 to DFC.
On August 7, DFC announced in a tweet: “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.” Assistant to the President Peter Navarro responded: “VERY disappointed last week’s great deal with Kodak tarnished by allegations. Absolutely RIGHT move by DFC!”
Also on August 7, Kodak announced it was launching an “internal review of recent activity by the Company and related parties in connection with the announcement of a potential loan” from DFC.