Syntax-Brillian asset purchasers ordered to plead case against contempt ruling

By Caroline Salls

Pittsburgh, Oct. 16 - Syntax-Brillian Corp. has asked the U.S. Bankruptcy Court for the District of Delaware to hold asset purchasers Olevia International Group, LLC and Jung-Jy Wu in contempt of court, according to a Thursday court filing.

The court has scheduled a hearing for Oct. 22 to allow Olevia and Jung-Jy Wu to explain why they should not be held in contempt of court.

As previously reported, Olevia International Group and Wu were ordered on Oct. 10 to close on the asset purchase agreement and make an $18 million term loan payment due at closing.

In September, Olevia asked the court to rule that it was not obligated to follow through with its asset purchase obligations because Syntax-Brillian allegedly breached the purchase agreement.

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

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

On Sept. 11, Syntax-Brillian filed a lawsuit asking the court to order Olevia and Jung-Jy 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.

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.

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