Syntax-Brillian files liquidating plan

By Caroline Salls

Pittsburgh, Jan. 20 - Syntax-Brillian Corp. filed a liquidating plan and related disclosure statement Friday with the U.S. Bankruptcy Court for the District of Delaware.

According to the disclosure statement, Olevia International Group LLC still has not closed on the sale of Syntax-Brillian's assets, and the buyer's appeals of court rulings ordering it to comply with the sale approval order are pending.

If the asset sale does not close by the plan effective date, Syntax-Brillian said the assets will vest in a lender trust to be established under the plan.

A liquidation trust will also be established, with an initial $250,000 to be funded by the company's debtor-in-possession financing lenders. Syntax-Brillian's pre-bankruptcy lenders will fund the lender trust.

Treatment of creditors will include:

• Holders of administrative claims, priority tax claims and non-tax priority claims will be paid in full in cash;

• Holders of DIP facility claims and secured tax claims will be paid in full from the lender trust;

• Holders of other secured claims will retain the rights to their claims and will receive the collateral securing the claim;

• Holders of pre-bankruptcy credit facility claims will receive distributions from the lender trust until the trust is exhausted after payment of administrative, priority and the other secured claims;

• Holders of pre-bankruptcy lender agreed deficiency claims will receive distributions from a liquidation trust until that trust is exhausted;

• Holders of general unsecured claims will receive distributions from the liquidation trust after liquidation trust expenses and a liquidation trust funding reimbursement are paid; and

• Holders of equity interests will receive no distribution under the plan.

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, 2008. Its Chapter 11 case number is 08-11407.

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