Kodak expects sales volumes to rebound after COVID-19 hit

(Reuters) – Eastman Kodak Co said on Tuesday it expects sales volumes and working capital to improve in the current quarter after reporting a 31% decline in quarterly revenue due to the COVID-19 pandemic, sending its shares up 7%.

The photographic equipment maker’s stock plunged on Monday after the U.S. government blocked a $765 million loan to the company, which was going to make drug ingredients for use in possible COVID-19 vaccines, because of “alleged wrongdoing” by executives.

Kodak said on Tuesday investigations by the U.S. Congress and the Securities Exchange Commission have commenced, and could impact the outcome of the loan from the U.S. International Development Finance Corp.

Senior Democratic lawmakers had asked federal regulators to investigate securities made by the company and its executives around the time it learned it could receive the government loan.

(Reporting by Munsif Vengattil in Bengaluru; Editing by Sriraj Kalluvila)