Kodak shares tank as much as 42% as government loan is put on pause while allegations investigated

Investing

Using a slow shutter speed an attendee is blurred as he walks by the Kodak booth during CES 2018 at the Las Vegas Convention Center on January 10, 2018 in Las Vegas, Nevada.

David Becker | Getty Images

Shares of Eastman Kodak plunged more than 40% during premarket trading on Monday after a federal agency said it was reviewing a previously announced $765 million loan for the onetime photography pioneer to produce drug ingredients.

“Recent allegations of wrongdoing raise serious concerns. We will not proceed any further unless these allegations are cleared,” the U.S. International Development Finance Corporation said in a tweet Friday.

The review of funding comes as the Securities and Exchange Commission is reportedly investigating how the company disclosed the deal with the government, according to a report from The Wall Street Journal.

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