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IPFS News Link • Government Debt & Financing

Kodak Granted Chairman 1.75 Million Options The Day Before Trump's $765 Million Loan To Company

• by Tyler Durden

The announcement of the loan the next day took shares of Kodak from about $2.50 on Monday to, at one point, $60. Shares now trade at $22. Kodak's executive chairman's options are now worth tens of millions of dollars, as a result.

The decision to grant executive chairman Continenza the options was "never formalized or made into a binding agreement, which is why it was not disclosed previously," the report says. They were reportedly granted to "shield Continenza's overall stake in the company from being diluted by a $100 million convertible bond deal clinched in May 2019".

The idea of granting options simply for this reason is unusual, as raising capital and the resulting dilution is a run-of-the-mill part of business and because options are usually for long-term incentives. For example, off the top of our heads, we cannot recall ever seeing an options issuance for this reason in the past. 

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