Eastman Kotak stock why 83% rocketed this morning

What happened

Shares of previous camera-film companies Eastman Kodak (NYSE: KODK) Exploded out of the gate this morning, rocketing 83% more and retreating slightly before pausing to catch their breath. However, as of 11:20 a.m. Wednesday, the stock was still 37.8%.

Because everything Eastman Kodak said.

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so what

As The Wall Street Journal This morning, a panel appointed by Eastman Kodak’s board found that Kodak had not violated any laws to investigate the circumstances under which the company had accepted a $ 765 million loan from the US government in July.

The loan is to help Kodak produce drugs for the fight against the corona virus Kodak sparked a rally in stocks – Even before the loan is officially declared. Information leaks within the company may have encouraged insider trading, and Kotak may have given stock options to top executives prior to the announcement of the loan, from which the investigation centered on the principles that they could profit from. But the special panel, hired by Akin Gump, Kodak’s law firm, made no such mistake.

What now

But there are still federal investigations into the company. For example, yesterday, the Magazine The Inspector General of the International Development Fund (IDFC) is reportedly reviewing the debt. It is over the ongoing investigations of the Securities and Exchange Commission and several congressional committees.

There is no guarantee that these other inquiries will come to the same conclusions as Kodak’s own inquiry. In the meantime, IDFC has suspended the payment of the loan to Kodak, and the money is unlikely to be released until these other inquiries are completed.