updated 05:05 pm EDT, Tue July 8, 2008
Olevia files Chapter 11
Low-cost Olevia LCD TV maker Syntax-Brillian yesterday filed for Chapter 11 reorganization and announced it will sell off its Vivitar digital camera business, reports say. The voluntary decision to enter bankruptcy protection also includes a proposed sale of the company's assets to Olevia International Group, which was newly created and co-owned by TCV Group, a supplier for Syntax. The sale would include Olevia International Group taking on $60 million of Syntax-Brillian's secured debt.
The sale needs approval from the U.S. Bankruptcy Court for the District of Delaware, and is subject to other offers. Syntax-Brillian is expecting to announce final details of the transaction by August 31. Syntax-Brillian's interim chief executive officer Gregory F. Rayburn said that the Chapter 11 process is the best long-term solutions for everyone involved with the company, as it gives the company time to continue to conduct its business operations while dealing with the sale efforts.
At the same time, the company is looking to sell off the camera making brand Vivitar in a bid to speed up the recovery process. Vivitar was purchased in 2006 for $26 million to tap into its international retail accounts in order to distribute the Olevia TVs.