(Reuters) – Corporate actions carried out by Eastman Kodak Co KODK.N Chief Executive Jim Continenza, around the time the camera equipment maker learned it could receive a $765 million government loan, did not violate internal policies, a law firm said Tuesday. attorneys hired by the company’s board of directors.

However, an investigation found “loopholes” in Kodak’s insider trading processes where some people were not on insider lists, Akin Gump Strauss Hauer & Feld LLP said in a report to a special committee. Independent Directors of Kodak’s Board of Directors. (bit.ly/2RrQQxz)

Kodak’s general counsel proved to be overwhelmed and enforced outdated policies, resulting in board members not being fully briefed on relevant internal policies regarding option grants, the firm said. lawyers.

The US government last month suspended its loan to Kodak to produce pharmaceutical ingredients at its US factories, due to concerns over the company granting options for 1.75 million shares to Continenza and other securities transactions carried out by managers.

Early news of the loan had sent shares soaring 1,000%, generating a windfall for executives, some of whom had received options a day earlier.

US lawmakers raised “serious concerns” about the transactions and asked the Securities and Exchange Commission to investigate the circumstances surrounding the case.

“It is clear from the findings of the review that we need to take steps to strengthen our practices, policies and procedures,” Continenza said Tuesday. (bit.ly/2FBbQPT)

Akin said Continenza and board member Philippe Katz had obtained prior approval to negotiate from Kodak’s general counsel, who concluded it was appropriate because the company’s loan application process was at a “very uncertain” stage.