Press Releases

Waters, Engel, Clyburn, Maloney, Green Launch Investigation into $765 Million Deal Between Trump Administration and Kodak

Washington, DC, August 5, 2020

Congresswoman Maxine Waters (D-CA), Chairwoman of the House Committee on Financial Services, Congressman Eliot L. Engel (D-NY), Chairman of the House Committee on Foreign Affairs, Congressman James E. Clyburn (D-SC), Chairman of the House Select Subcommittee on the Coronavirus Crisis, Congresswoman Carolyn B. Maloney (D-NY), Chairwoman of the House Committee on Oversight and Reform, and Congressman Al Green (D-TX), Chairman of the Subcommittee on Oversight and Investigations, sent a letter to Adam Boehler, Chief Executive Officer of the U.S. International Development Finance Corporation (DFC) requesting all documents and communications related to the DFC’s consideration of Eastman Kodak Company (Kodak) for financing under the DFC’s Defense Production Act (DPA) loan program. In the letter, the Members also request all communications between DFC and any private sector entity regarding financing under the DFC’s DPA loan program. Loans made under the program are intended to strengthen the United States’ production of medical supplies and equipment to support the domestic response to the coronavirus pandemic. On July 28, 2020, President Trump announced a deal to award Kodak, a company with little experience producing prescription drugs or their components, a $765 million loan to produce active pharmaceutical ingredients under the DPA.

“On July 28, 2020, you signed a letter of interest to provide $765 million in financing to Eastman Kodak Company (“Kodak”) under DFC’s DPA loan program. According to DFC, the loan would be DFC’s first use of DPA authority and would support Kodak, an organization that was on the brink of failure in 2012 and was unsuccessful in its previous foray into pharmaceutical manufacturing, in its efforts to develop the capacity to produce up to 25 percent of domestic pharmaceutical components,” wrote the Members.

See below for the full text of the letter.

Mr. Adam Boehler
Chief Executive Officer
U.S. International Development Finance Corporation
1100 New York Avenue, NW
Washington, D.C. 20527

Dear Mr. Boehler:

Pursuant to its legislative and oversight authority under House Rule X, 116th Congress, the U.S. House Committee on Financial Services, in coordination with the Committee on Foreign Affairs, Committee on Oversight and Reform, and Subcommittee on the Coronavirus Crisis, is investigating matters related to the U.S. International Development Finance Corporation’s (“DFC”) program for financing private sector entities in support of the domestic COVID-19 response under the Defense Production Act of 1950 (“DPA”). On July 28, 2020, you signed a letter of interest to provide $765 million in financing to Eastman Kodak Company (“Kodak”) under DFC’s DPA loan program. According to DFC, the loan would be DFC’s first use of DPA authority and would support Kodak, an organization that was on the brink of failure in 2012[1] and was unsuccessful in its previous foray into pharmaceutical manufacturing,[2] in its efforts to develop the capacity to produce up to 25 percent of domestic pharmaceutical components.[3]

In furtherance of this investigation, we request that you produce the following records as soon as possible, but no later than August 31, 2020:

  1. All Records, including Communications related to DFC’s consideration of Kodak, and any component or affiliate thereof, for financing under DFC’s DPA loan program, including but not limited to, all Communications between DFC and Kodak from May 1, 2020 through August 4, 2020; and

  2. All Communications between DFC and any private sector entity regarding financing under DFC’s DPA loan program from May 1, 2020 through August 4, 2020.

Additionally, please provide your written acknowledgement of this letter within five days of its receipt. We also ask that you please make your staff available to meet and confer with committee staff within five days of receipt of this letter to discuss the aforementioned requests and the enclosed definitions
and instructions.

Please direct any questions regarding this request to David Abramowitz, Kevin Burris, or Bruce Johnson of Committee on Financial Services staff.


Sincerely,

The Honorable Maxine Waters
Chairwoman
House Committee on Financial Services

The Honorable Eliot L. Engel
Chairman
House Committee on Foreign Affairs

The Honorable James E. Clyburn
Chairman
House Select Subcommittee on the Coronavirus Crisis

The Honorable Carolyn B. Maloney
Chairwoman
House Committee on Oversight and Reform

The Honorable Al Green
Chairman
Subcommittee on Oversight & Investigations
House Committee on Financial Services

Enclosures
cc: The Honorable Patrick McHenry, Ranking Member, House Committee on Financial Services
The Honorable Michael McCaul, Ranking Member, House Committee on Foreign Affairs
The Honorable Steve Scalise, Ranking Member, House Select Subcommittee on the Coronavirus Crisis
The Honorable James Comer, Ranking Member, House Committee on Oversight and Reform
The Honorable Andy Barr, Ranking Member, Subcommittee on Oversight & Investigations, House Committee on Financial Services
The Honorable Dr. Mark Esper, Secretary, U.S. Department of Defense


___________________________
[1] In re Eastman Kodak Company, et al., No. 12-10202 (ALG) (Bankr. S.D.N.Y. 2012), Doc. 1.
[2] Chunka Mui, How Kodak Failed, Forbes (Jan. 18, 2012).
[3] DFC Press Release, DFC to Sign Letter of Interest for Investment in Kodak’s Expansion Into Pharmaceuticals (July 28, 2020).




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