COLORADO INKJET COMPANY SHUTS DOWN

[Anonymous]

http://www.bcbr.com/article.asp?id=102739
COLORADO
INKJET COMPANY SHUTS DOWN 

BOULDER – A Boulder-based inkjet printing technologies company
has gone out of business after a legal dispute with one of its
lenders.Imaging Technology International Corp., better known as iTi,
shut its doors on Oct. 22 telling vendors in a letter that it had run
out of cash.Founded in 1992, the company employed as many as 43 people
in Boulder in 2008. It designed, developed and manufactured digital
systems that incorporate inkjet technology for industrial printing
applications.Earlier this year, Italy-based Durst Phototechnik AG filed a
civil complaint against iTi in the U.S. District Court of Colorado
accusing the Boulder-based company of deceiving it in financial matters.

According to court documents, Durst
invested and loaned $2 million to iTi in June 2007.In the Jan. 30, 2009
complaint, Durst claimed that iTi knew, or should have known, that the
company’s sales and revenue projections, which were used to secure the
money from Durst, would never materialize.In its response, iTi denied
the claims, saying Durst officials were well aware of iTi’s financial
situation before and throughout the course of the loan. It went on to
claim that Durst failed to fulfill its promises that induced iTi to
change its product design by arbitrarily raising the prices on its
electronics, eliminating favorable credit terms and modifying the
currency in which Durst priced and sold its products to iTi.Settlement
talks between the two parties broke down this summer, and the case was
reopened in early September.In late September, Durst expanded its civil
claims to include former iTi Chief Executive Bruce Morgan.On Oct. 26,
Morgan and iTi filed a motion with the court to dismiss those claims
against Morgan saying Durst “lacked any factual allegations that Morgan
acted in his individual capacity.”Further disclosure and hearing
deadlines for the case have been scheduled into 2010.

[Author]

November 3, 2009 at 11:34 AM