Document Ddj81E4RJ6NdYaaOvvXzvNvro

A *A' A* A -A* A A A* A A.A A* A A A A A A A A A A A* A" A- A A* A A- A- A A A A A1 A' A- A- A* A A A A A A- A- A- A A- A A A- A A A A A* A A A* A A A A* A A A A A A A A A A A A A A' A A * SULL1VLA at ISCDCVM3 Friday, January 3, 3.992 09i16s04 * AAAAAAAAA AAAA AAAAAAAA AAAAAAA^AA1 AAAAAAAAAAAAAAAAAAAAAA* AAAAAAAA'A'AAAAAAAA AAAAA AAAA'AA t From.! KEEFERJL-- ISCDCVM5 Date and time To s RANCKJH --HKVAX J, Hutchison Ranch KRISHNS --IN00H1 01/02/92 17:15:55 Shankar KRISHNAN Frotti Jeff Keefer - KEEFERJL- Subjects India Credit Terms EXT 992-4248 SEE FOLLOWING NOTE FROM LAURA SULLIVAN, I HAVE SOME CONCERN ABOUT GOING TO ISO DAY L/C FOR THIS CUSTOMER. AS YOU KNOW THE CORPORATION AND TI02 BUSINESS HAVE SOME VERY DIFFICULT CASH OBJECTIVES TO MEET IN 1992. EXTENDING LONGER PAYMENT TERMS MAKES THE CASH SITUATION WORSE. IN ADDITION, MY EXPERIENCE IS THAT WHEN YOU MAKE AN EXCEPTION LIKE THIS, EVENTUALLY THE NEW TERMS BECOME THE STANDARD IN THE MARKET OVER TIME, I BELIEVE SETTING A PRECEDENT LIKE THIS IS DANGEROUS, NOT ONLY IS OUR CASH POSITION WORSENED BY THE EXTENSION OF MORE LIBERAL TERMS TO THIS CUSTOMER, WE RUN THE RISK OF TAKING AN EVEN LARGER CASH FLOW PENALTY AS MORE CUSTOMERS ARE EXTENDED THESE TYPES OF TERMS, I WOULD LIKE TO HEAR MORE FROM YOU ABOUT WHY WE SHOULD EXTEND THESE TERMS. FOLLOWING ARE A FEW QUESTIONS THAT COME IMMEDIATELY TO MIND! 1, HOW LONG HAVE WE DONE BUSINESS WITH THIS CUSTOMER, ARE THEY STRATEGIC? ARE THEY A COMMITTED CUSTOMER? 2. WHAT IS THE EXACT NATURE OF THE COMPETITIVE SITUATION? 3, WHAT ARE THE ALTERNATIVES TO EXTENDING THESE MORE LIBERAL TERMS? 4. WHAT IS YOUR THINKING WITH RESPECT TO THE REST OF THE MARKET? WHAT IS THE RISK OR PROBABILITY THAT THE WHOLE MARKET WILL MOVE TO THESE TERMS? WHAT CAN BE DONE TO PREVENT THIS FROM HAPPENING? THANKS FOR YOUR INPUT. ________________ ________________ *_________ JEFF *** Forwarding note from SULLI VL..A-- ISC0CVM3 01/02/92 To! KEEFERJL--ISCDCVMS Jeffrey L, Keefer 1.6 s 38 *** From'! Laura A, Sullivan Concord Plaza, Read MLS, International Customer Rep. P.hones 302-695-5385 Fa x;302-695-6012 Telexs 650-3921041 MCIUW Subject,: India Credit Terms Hello Jeff - I am the International Customer Representative for T:i.02 to India. Per my previous message concerning 180 days I/c, Jim Seaho'lm of Finance has given is approval to accept Premier Vinyl Flooring's order under this term. Normal payment term for India is sight draft letter of credit. We have been making exceptions on a case by case basis. Please advise if you approve accepting 180 days 1/c for Premier Vinyl order for 15MT. Thank you and w e 1 c ,o m e! * cci SEAHOLJF..--ISC0CVM1 James F, Seabolm BOWENCM ...-IS.CDCVMl LUNDQUDM---ISCDCVM5 David M. Lundquist Christine M. Bowen N36460