Why Kodak Stock Is Getting Crushed Today
Shares of Eastman Kodak (NYSE: KODK) tumbled by as much as 41% right out of the gate Monday morning on sky-high volume. The company's shares are plummeting this morning in response to the news that the U.S. International Development Finance Corporation (DFC) will reportedly pause a $765 million loan agreement due to allegations of insider trading.
On July 28, Kodak announced that the DFC signed a letter of intent in regard to this loan in an effort to boost generic-drug manufacturing capacity within the United States. If the company's executives aren't cleared of these allegations, however, this transformational loan agreement may go up in smoke.
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Source Fool.com