Syntax-Brillian To Sign Asset Purchase Agreement with Olevia

Syntax-Brillian Corporation, a producer of consumer electronics, recently revealed its intention to sign an asset purchase agreement with Olevia International Group. The agreement is subject to legal approval, and on its completion Olevia will acquire some of Syntax-Brillian’s assets. Syntax-Brillian will be relieved of about $60 million in secured debt.

 

Olevia is under common ownership with TCV Group, which was formerly a Syntax-Brillian associate in the areas of industrial and mechanical design. Currently TCV Group supplies Olevia with plastic injection molded parts.

 

Syntax-Brillian has additionally filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code, in Delaware.

 

"Following a careful review of all of our alternatives, Syntax-Brillian’s management and Board of Directors – working in close consultation with outside legal and financial advisors – unanimously determined that a sale, expedited through the Chapter 11 process, represents the best long-term solution for our retail partners, suppliers, employees and consumers,” said Gregory Rayburn, interim chief executive officer at Syntax-Brillian, in a statement.

 

Rayburn continued: “This process will allow us to operate business as usual, even as we address liquidity and leverage issues experienced in the past year. It will allow us to honor our commitments to our retail partners, suppliers, employees and consumers, continue to advance initiatives that improve and develop our product lines, and better position us to capitalize on the demand for our products going forward.”

 

The petition will apply to all the sister concerns of Syntax-Brillian, except for Vivitar, the brand under which the company sells digital still and video cameras. A separate proceeding will take place for Vivitar, where the company will be sold altogether. Until that point, the company will function as normal.

 

In addition to the bankruptcy petition, Syntax-Brillian has also reportedly received notification from the Nasdaq Stock Market. This notice states that the company has failed to comply with the Nasdaq directive of a minimum $1 per share condition. This condition is essential for listing in the Nasdaq Global Market, and should the situation not be rectified within a 10 day time period, the company’s stock will be delisted.

 

The directors of the company have resigned, leaving only Michael Garnreiter on the Board of Directors. Gregory F. Rayburn remains Interim Chief Executive Officer of the Company.