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

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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.

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