Tuesday, July 8, 2008
Syntax-Brillian Files for Chapter 11, Awaits Delisting
High-definition television manufacturer Syntax-Brillian Corp. announced Tuesday that it has agreed to sell a portion of its assets to a newly created company that is owned by one of the Tempe, Ariz.-based business’ original partners. The new enterprise, Olevia International Group LLC, is owned by the TCV Group, which provides Syntax-Brillian with the injection-molded plastic parts for its Olevia-branded widescreen LCD televisions. Syntax-Brillian noted that, in exchange for the purchased assets, Olevia International will assume $60 million of Syntax-Brillian’s secured debt. In a related announcement, Syntax-Brillian said it has filed for Chapter 11 protection with the U.S. Bankruptcy Court’s Delaware District. The filing includes all of Syntax-Brillian’s subsidiaries except Vivitar, which manufactures digital still and video cameras. Syntax-Brillian reported that it has initiated a separate sale process for Vivitar, which will continue to conduct business as usual. In yet another announcement, Syntax-Brillian revealed that it has received a third delisting notice from the NASDAQ Stock Market because the company’s stock price had fallen below the $1 per-share minimum. Though it has six months to regain compliance, Syntax-Brillian said it will not attempt to do so and, as a result, it expects its stock to be delisted within the next 10 days. The company also reported that all but one of its directors has resigned from its board, effective June 30. Additionally, Syntax-Brillian said it fired James Ching Hua Li, president and chief executive officer, on July 2. Earlier this year, Li had taken an indefinite leave of absence for what the company said were personal reasons. Gregory F. Rayburn remains Syntax-Brillian's interim CEO. The company has had little good news to report in the past few months, a stretch that includes two Nasdaq de-listing warning notices, the sale of its liquid-crystal-on-silicon manufacturing unit, and a class-action lawsuit filed on behalf of its investors.