Syntax-Brillian granted interim access to $7.5 million of DIP financing

By Jennifer Lanning Drey

Portland, Ore., July 9 - Syntax-Brillian Corp. was granted interim access to $7.5 million of its $23 million debtor-in-possession financing, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Delaware.

The hearing for final DIP approval is scheduled for July 30.

Silver Point Finance, LLC is the DIP lender.

The financing will provide the working capital and financial resources needed to fund the company's transition to new ownership, Syntax-Brillian said in a company news release.

Additionally, the company said previously that it plans to use $15 million of the DIP borrowings to repay its pre-bankruptcy debt obligations.

The facility will mature on the earliest of Sept. 2, the effective date of a plan of liquidation or confirmation and upon the sale of the company's assets.

Interest will be either the greater of Base rate plus 800 basis points and 15.5% or the greater of Libor plus 900 bps and 13.5%.

Other first-day motions approved

Syntax-Brillian also gained court approval for other first-day motions, including to continue wage and salary payments, honor existing employee benefits and continue certain customer programs.

"These approvals will allow us to continue business operations as normal while we complete our sale to Olevia International Group, ultimately resulting in a much stronger company that is better positioned to reach its full potential," Gregory F. Rayburn, interim chief executive officer of Syntax-Brillian, said in the release.

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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