Tuesday, July 15, 2008

Syntax-Brillian Secures $7.5M Interim Loan

Bankrupt high-definition television manufacturer Syntax-Brillian Corp. announced Monday that it has received $7.5 million in interim, debtor-in-possession financing that it will use to fund business operations and repay some debts while the sale of the majority of its assets is finalized. Syntax-Brillian said it obtained the interim loan, which the U.S. Bankruptcy Court has already approved, from various lenders and Silver Point Finance LLC. Last week, Syntax-Brillian reported that a newly created company, Olevia International Group LLC, has agreed to acquire a majority of Syntax-Brillian's assets in exchange for assuming some $60 million of Syntax-Brillian’s secured debt. The Tempe, Ariz.-based company also reported Monday that it has received another delisting notice from the Nasdaq Stock Market. The latest correspondence states that the company's recent Chapter 11 filing constitutes additional grounds for delisting. Nasdaq had previously notified Syntax-Brillian that it was in non-compliance because its stock price had dipped below the $1 per-share minimum. As with the previous notice, Syntax-Brillian said it does not intend to appeal.