Syntax-Brillian waves the white flag, files for Chapter 11 bankruptcy

So yeah, apparently that whole attempt to "streamline operations" back in April didn't go over so well, as Syntax-Brillian -- you know, that firm neck deep in panel partnerships and responsible for Olevia HDTVs -- has just filed for Chapter 11 bankruptcy. The Arizona-based company has also "entered into a deal to sell certain of its assets to a newly created company called Olevia International Group LLC," which has agreed to pick up some $60 million of its secured debt. We're also told that operations in Tempe have ceased, and "about eight employees" (including the finance chief, general counsel and finance staff) are sticking around with nothing better to do.

[Thanks, Paul]

[james rose @ Jul 8th 2008 12:52PM]

great there goes my stock

[LongshotX @ Jul 8th 2008 1:12PM]

Damn I bought their 527v. Should I sell it immediately?

[Racedriven @ Jul 8th 2008 1:22PM]

That's just great, I purchased an Olevia HDTV last year, so what happens to the tech support and the warrently? Of course I purchased the warrently from BJ's Wholesale Club, I'm thinking that that was a good move now.

[james rose @ Jul 8th 2008 1:46PM]

smart move - olevia was never known for their service anyway...i've had two tvs for a few years now and they both still work great

keepin those fingers crossed

[phanbouy @ Jul 8th 2008 1:22PM]

worst company name evar?

[Andir3.0 @ Jul 8th 2008 2:25PM]

I don't know... It's gotta be better than using the name Olevia which sounds somewhat similar to "I'll leave ya." Then again, I guess the simile works in this case.

[totoro @ Jul 8th 2008 1:31PM]

Wow, so all that cost cutting/price war stuff Olevia instigated the last two xmas seasons ends up in bankrupcy? Brillian(t)!

[MangoTru7h @ Jul 8th 2008 1:40PM]

Does this mean I should stop checking for new firmware for my Olevia TV?

[Montusama @ Jul 8th 2008 2:06PM]

So does this mean the whole 8 employees are getting paid for just chillin at the office?

[Cellien @ Jul 8th 2008 2:36PM]

That sucks. I love their TVs. I have one that is a few years old w/ no problems (knock on wood) and another that is about 8 months old (47"). Gee, I hope it lasts for a while now with the company going under.

[corporation @ Jul 8th 2008 2:36PM]

wow.

bought one of their 32"s two years ago...

still works well...

*knocks on wood...

[bobthehdbuilder @ Jul 8th 2008 3:59PM]

Olevia is not going under. If you read carefully, it says the parent company is filing for bankruptcy, and a new company named Olevia International Group LLC has picked up 60 million in debt, to carryout the manfacturing. Those 8 employess are of the parent company. I'd bet someone buys them out, which is completely normal especially in a terrible ecomony.

As for people who purchased TV's, the new company is your new contact, until someone buys them out as well.

[F-Olevia @ Jul 8th 2008 11:42PM]

It's not quite that simple Bob... "Olevia international Group LLC" is a NEW company. They are taking on some of Syntax Brillian's debt, and buying their assets - i.e. the name and inventory. None of the articles say anything about them taking on warranties. I would guess your warranty is now worth the same as my stock in the company. NOTHING.

What bugs me is that this newly created company (likely made up of friends and family of the top level execs) gets to take all of the assets that I (as a stockholder) own a "share" of. I get nothing.

[F-Olevia @ Jul 8th 2008 4:44PM]

So yes... Olevia is going under. The new company having the same name is, for all intents and purposes, a coincidence!

[bobthehdbuilder @ Jul 8th 2008 6:56PM]

So wait, how can you say "there was no mention about them taking on warranties", but then automatically assume they don't? Why would Olevia alienate their customer base? They would be setting themselves up to fail if they didn't take that on, it's not like they really do much warranty work anyway, if you don't register your TV within 30 days, you have to ship your unit in to Olevia for service, it would not be economically feasible to pay shipping both ways for warranty work on a $1000 tv.

Oh, and why would you ever buy stock in Olevia....

[F-Olevia @ Jul 8th 2008 11:52PM]

I own stock in a lot of things. Some bad, some good. Guess which category this one falls into.

First, I said "I would guess your warranty is now worth... NOTHING". It's just a guess, but I would say a fairly educated guess. This new company is taking the assets of Syntax Brillian in exchange for paying off $60-million of debt. They are not buying the company, or any of the blemishes it has. They are taking the name, and likely patents, inventory, etc. Once they take ownership of those assets (and Vivitar is sold off to the highest bidder), Syntax Brillian will have NO assets. They will have only liabilities - hundreds of millions in defaulted loans, tax liabilities and outstanding warranties.

The only way I can see them honoring the warranties is if the bankruptcy judge forces them to as a condition of the sale. With $60-million (to the creditors) at stake, I don't think the judge will risk it.

[hapablap @ Jul 8th 2008 11:10PM]

I've had a 32" for almost 2 years and still looking good. I recently (last month) got their tech support to replace my 47" due to defective pixels. Their customer service was top notch and I had a new tv in no time. I'm not surprised by this news however. Hopefully my tv stays trouble free.

[Steven @ Jul 9th 2008 3:30AM]

I thought Chapter 11 was there to avoid bankruptcy.

[UK investor @ Jul 9th 2008 1:39PM]

I was mis-sold the stock by my broker at around $9 in April/May 2007 around the time it started to dive. 20,000 of stock down from $9 to 2 cents. Bloody hell, how much have I lost! Oh yes and I let the broker off the hook by agreeing an out-of-court settlement. I have no cash left but the broker doesn't work any more. Almost worth it.

[I LOVE THE CAPS LOCK KEY @ Jul 9th 2008 3:46PM]

This really sucks. Olevia (Syntax Brillian) was the only TV to still be made in America and is one of the very few rare TV's that comes direct from the factory with ISF calibration. Syntax Brillian's attention to manufacturing details, was very high. It's just a shame that the marketplace never really looked at them very much. I suppose some of this may have had to do with poor marketing and the plain Jane cabinet appearance of some of their products, even though their operational performance was better than anything in it's price class (sh*tty Vizio).

This is the second saddest day. The first was the near death of Pioneer Kuro Plasma. Third was the end of Super Fine Pitch Trinitron. It just seems Jane and Joe Consumer just care more about how something looks when it's turned off then when turned on.

[ROBERT A ZALESKI @ Jul 11th 2008 7:23PM]

SINCE THE EXEC. ARE WALKING AWAY WITH 60 MILLION OF THE STOCK HOLDS MONEY IN STARTING A NEW COMPANY WITH THE SAME NAME AND USING THE COURT CHAPTER 11 TO STEAL THE MONEY. THERE MUST BE A WAY THE STOCK HOLDS CAN FIGHT THIS. WE WERE SUPPORTTING A COMPANY WITH THE IDEA IT CAN GROW INTO SOMETHING THAT CAN EARN AND GROW. INSTEAD THE MONEY WAS GIVE WITH A TAKE AND RUN ATTITUTE WITH NO CONCERN FOR THE INVESTOR.. COME ON TWO CHIEF FINIANCIAL CAN NOT EVEN GIVE THE NASDAC FINIANCIAL NUMBERS. WHERE IS THE JUSTICE.

[robert @ Jul 15th 2008 6:41PM]

It is strange how this company has handle it's stock holder, going from a share price of 9 dollars to 2 cents and then steeling the stock holder remainer money. the money goes to friends and family of the execs!!! to begin a new tv company with the same name. Boy if Robin Hood was alive today. I thought the stock holder who invest into companies are to watch a company grow. not watch money invested be stolen by the exces to be use to start a new company owner without the stock holder. I think this is theivery, from an exec greed stand point, Instead of looking at the interest of the actual owners of the company the stock holder, There was no vote to do this to us. The new model should have included the stockholder, now the stock is not worth anything. What was the whole ordeal with holding off on finiancial reporting for 4 months and miss reporting of finiancial results for more than a year, and two finiancial officers, and one CEO suddenly leaving the firm. We are in need of legal representive to protect the stock holder interest.

[batte @ Jul 23rd 2008 3:06PM]

Today they submitted the list of shareholders to the courts. 29,282 of them. Are we to believe 29,282 investors gambled and speculated? No, 29,000 investors believed the financials being reported were accurate and there was no FRAUD occurring.

Today the message from the firm is the prior financials are not to be believed and your stock is worthless and the Asian sales to Schot have been confiscated by Kolin.

Folks, this, in my opinion, is as massive a FRAUD as Enron. Sollitto, Li and the insiders knew what they were doing and what they were doing was DE-FRAUDING American investors and sending money to Taiwan. There was no integrity at this firm at all.

Look at the CFO Hodgson claiming he was a managing partner in a firm called "Wild Turkey Equity Partners". I personally spoke with the SEC and they assured me no such firm has ever been registered to do business in the financial sector. Odd for a Venture Capital firm not to bother registering isn't it?

All of these people should be investigated thoroughly and sent to prisson for wrongdoing. In my opinion of course.

[ROBERT A ZALESKI @ Jul 29th 2008 1:28PM]

It is strange how this company has handle it's stock holder, going from a share price of 9 dollars to 2 cents and then steeling the stock holder remainer money. the money goes to friends and family of the execs!!! to begin a new tv company with the same name. Boy if Robin Hood was alive today. I thought the stock holder who invest into companies are to watch a company grow. not watch money invested be stolen by the exces to be use to start a new company owner without the stock holder. I think this is theivery, from an exec greed stand point, Instead of looking at the interest of the actual owners of the company the stock holder, There was no vote to do this to us. The new model should have included the stockholder, now the stock is not worth anything. What was the whole ordeal with holding off on finiancial reporting for 4 months and miss reporting of finiancial results for more than a year, and two finiancial officers, and one CEO suddenly leaving the firm. We are in need of legal representive to protect the stock holder interest.

[Bill Dunn @ Sep 30th 2008 1:22PM]

Just spoke with SyntaxBrillian rep and he told me the company has filed for Chapter 11 protection and under that are still conducting business as usual (ie. warraties, service, parts etc.) while they restructure finances and at the moment the company is looking good(but what else would he/they say). as of 9/30/09.