Why Is Kodak Making Pharmaceuticals?
Kodak increases spending on lobbying the government before getting a loan
Eastman Kodak Co ramped up its lobbying spending for the U.S. government months before the Trump administration announced a $ 765 million loan to a photo equipment maker. This is evidenced by the company's public records presented to Congress..
According to lobbying information, from April to June, the company spent $ 870,000 on «lobbying costs».
Kodak hasn't spent any money on lobbying before as company spent less than $ 5,000 in Q1 2019.
The company pushed for increased lobbying costs while exploring possible government support for research related to the coronavirus pandemic.
«Since the outbreak of COVID-19, Kodak, like many businesses across the country, has explored federal support for the company and our employees, as well as ways to help state and federal governments respond to the pandemic.», – said a company representative in a statement sent by email.
«This included our application for a federal loan to support the launch of Kodak Pharmaceuticals to support internal measures to combat COVID-19», – said in a statement.
Bloomberg previously reported on strengthening Kodak lobbying.
Kodak rides wild week of trading after receiving $765M government loan to produce drug chemicals
Kodak's $ 765 million loan agreement with the U.S. government to manufacture pharmaceutical ingredients was suspended Friday due to «recent allegations of wrongdoing».
Last week, senior Democratic deputies asked federal regulators to investigate securities deals made by the company and its executives around the time the company learned it could get a loan. They raised concerns about insider trading.
Kodak said on Tuesday that Congress and the SEC have begun investigations that could affect the outcome of the loan transaction.
The company also said it expects sales and working capital to increase in the current quarter after reporting a 31% decline in quarterly revenue due to the pandemic..
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