Collins Ink Corp. agrees to supply Kodak temporarily
By WILL ASTORRochester Business Journal
October 24, 2011
Collins Ink Corp. on Monday agreed to reinstate temporarily its contract to supply ink for Eastman Kodak Co.’s Versamark printer line.
The companies’ attorneys were slated Monday in the U.S. District Court in Rochester to argue a Kodak motion to block Collins’ cancellation of the contract. Collins president Lawrence Gamblin, who attended the hearing, agreed to the temporary reinstatement after lawyers from both sides at conferred informally for roughly an hour at District Judge David Larimer’s urging.
The reinstatement is to stay in effect until the parties next scheduled court session Nov. 1.
Citing fears over Kodak’s ability to pay and over the local company’s ongoing financial stability, Collins unilaterally cancelled the contract Oct. 14, stating that after a brief transition period it would supply Kodak’s Versamark customers itself.
In an Oct. 10 letter warning Kodak of the imminent cancellation, Gamblin cited downgrading of Kodak’s debt and recent news reports as giving Collins “clearly reasonable grounds for insecurity regarding Kodak.”
Versamark machines are room-size inkjet printers used by commercial printers and other high-volume customers.
Kodak responded Oct. 17 with a lawsuit accusing Collins of trying to steal business. In papers filed Monday, Kodak attorney Fred Aten of Harter, Secrest & Emery LLP that Collins’ cancellation of the contract leaves Kodak unable to supply ink to 90 percent of its Versamark printers.
After the Monday court session, Gamblin and attorneys representing the companies declined to comment.
The camera giant had lost some $54,000 worth of business since the cancellation and Collins’ takeover of Versamark accounts would cause Kodak to lose much more business, stated Douglas Tinnel, Kodak director of inkjet printer supply solutions, in a separate filing. Kodak would be particularly hard pressed to continue serving lotteries that use Versamarks to print tickets, he said.
Closing the Monday court session, Larimer cautioned lawyers for both sides not to deluge the court with filings.
“I enjoyed reading your papers over the weekend,” Larimer told the lawyers. “But it’s clear several trees have been killed. There are interesting legal issues here. But there are practical business matters as well.”
Original Post
