Despite spat , Kodak and Collins Ink Corp extend pact

[Anonymous]

Despite spat , Kodak and Collins Ink Corp extend pact

Breaking up is hard to do, whether it’s high school sweethearts or Eastman Kodak Co. and one of its key suppliers.

Kodak and Collins Ink Corp. on Monday agreed to a one-week extension of a 10-year-old business arrangement that fell apart in recent days.

The two companies worked out the extension in closed-door meetings at the federal courthouse in downtown Rochester. They had been scheduled to appear before U.S. District Court Judge David G. Larimer for a hearing on an injunction request Kodak filed last week.

Kodak was seeking to force Collins to continue supplying inkjet ink for its Versamark printer line, with Kodak serving as a reseller.

Attorney Anthony G. Covotta declined to comment as to why Collins agreed to a one-week extension of the supplier contract when it had been trying to get out of it.

In court documents, Collins argued that ending the agreement was a last-ditch effort to protect itself as fears of a Kodak bankruptcy grew.

Collins said it "concluded that Kodak’s financial stability did not merit the credit it once did; that Kodak’s refusal or inability to pay ($2.5 million owed Collins) left Collins Ink with no other choice; that there was no future for Collins Ink in Versamark or with Kodak in general … and that in light of Kodak’s financial instability, rather than following Kodak’s sword, termination of the agreement and notification of intent to allow the contract to expire was the best option."

The reseller arrangement already was due to expire in December.
Kodak has argued that Collins’ talk of financial instability is a red herring as it tries instead to snap up Kodak customers and to elbow its way into becoming the inkjet ink supplier for Kodak’s Prosper press line.

Collins’ abrupt announcement earlier this month to no longer sell ink through Kodak is causing the Rochester-based photo and imaging company "irreparable harm," according to Kodak. "This is a perfect storm," inkjet printing solutions supply network director Douglas Tinnel said in an affidavit.

"Kodak has been forced to turn its attention away from its customers to focus on ramp-up and supply chain issues while Collins Ink raids Kodak’s customer base in the field, all while forcing Kodak to help when Kodak sends its customers to Collins Ink," Tinnel said.

"We cannot immediately increase our production effectively five-fold to make up for the supply now lost because of Collins Ink," he added.

[Author]

October 25, 2011 at 7:35 AM