Printer Sues After Financing Is Pulled –Michelson

“This lawsuit is not just about Color-Web’s claim against a bank,” notes Moyal. “If our bank is allowed to renege on a commitment to us, then any business’ bank will be able to renege on a commitment to them. Banks, as licensed institutions, should be held to a higher standard, and a signed commitment should be followed through on. signed its first notes (with the same lender) in 2003—and we honored those commitments, in spite of the economic downturn that ensued.”

Of course, the bank has an opposing argument why the loan fell through, so it will ultimately be up to the courts to decide. Even so, the saga does illustrate how hard, but critical, it is to get the financing to optimize productivity. Because, as the CEO of another print shop stressed in an article this issue about why they installed a color inkjet web press in January, “If you aren’t growing, you’re dying.”

Mark T. Michelson

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