Eastman Kodak (KODK) plunged 30% after a $765 million loan from the U.S. government to help make drug ingredients was put on hold.
Regulators are also looking into allegations of insider trading. “Recent allegations of wrongdoing raise serious concerns,” the US International Development Finance Corporation said. “We will not proceed any further unless these allegations are cleared.”
The Wall Street Journal also reported that the US SEC is investigating Kodak’s disclosures about the loans and is expected to probe the company’s awarding of stock option grants to executives on July 27.