Syntax-Brillian asset purchaser ordered to close on sale

By Caroline Salls

Pittsburgh, Oct. 10 - Syntax-Brillian Corp. asset purchaser Olevia International Group, LLC was ordered Friday to close on the asset purchase agreement and make an $18 million term loan payment due at closing, according to a filing with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, Olevia asked the court to rule that it is not obligated to follow through with its asset purchase obligations because Syntax-Brillian allegedly breached the purchase agreement.

Specifically, Olevia said Syntax-Brillian has breached the purchase agreement by failing to make a $3.5 million payment on a DigiMedia Essential claim, failing to pay license, royalty and registration fees on intellectual property and failing to maintain its contracts with Technology Resource Group, Inc.

In addition, the purchaser said Syntax-Brillian did not honor a covenant that keeps it from entering into a new contract related to the purchased assets without the buyer's consent.

Olevia also asked the court to order Syntax-Brillian to return its deposit.

However, the purchaser's requests were denied as part of Friday's ruling.

On Sept. 11, Syntax-Brillian filed a lawsuit asking the court to order Olevia and Jung-Jyh Wu to close on the sale of the company's assets.

Syntax-Brillian denied Olevia's allegations that some closing conditions have not been met.

To the extent that there was any deviation from the purchase agreement, Syntax-Brillian said either the deviation was not a condition that excuses Olevia's obligation to close on the sale, it was caused by Olevia's failure to perform its obligations under the purchase agreement; it was caused by Olevia's failure to act in good faith and deal fairly in its performance under the sale agreement; or it was agreed to or waived by Olevia.

Syntax-Brillian is a Tempe, Ariz.-based designer, developer and distributor of LCD HDTVs, digital cameras and microdisplay entertainment products. The company filed for bankruptcy on July 8. Its Chapter 11 case number is 08-11407.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.