Kodak’s stock soars after WSJ report that federal regulators found no wrongdoing on government loan deal

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Shares of Eastman Kodak Co. soared 59% in active premarket trading Monday, after federal regulators found no wrongdoing in the process which created a loan to the company which has been halted, according to a report in The Wall Street Journal. Citing a copy of the assessment reviewed by the WSJ, the report said the inspector general of the U.S. International Development Finance Corp., which brokered the $765 million loan deal, said he found no evidence that employees of the agency had any conflicts of interest in the plans, and found not misconduct on the part of the agency’s officials. Kodak’s stock had rocketed in July after news broke that the producer of chemicals used in photographic film secured the government loan to make pharmaceutical ingredients. The Securities and Exchange Commission launched an investigation into the trading of the stock before the news was released. Kodak’s stock has rallied 61.9% year to date, while the S&P 500 has advanced 14.5%.
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