Syntax-Brillian shareholder says bankruptcy judge has prior association with DIP lender

By Jennifer Lanning Drey

Portland, Ore., Dec. 16 - Syntax-Brillian Corp. shareholder Ahmed Amr requested that bankruptcy judge Brendan Shannon discontinue presiding over the company's bankruptcy case, in a Monday filing with the U.S. Bankruptcy Court for the District of Delaware.

Amr claimed that Shannon had undisclosed prior associations with Syntax-Brillian's debtor-in-possession lender Silver Point Finance LLC and consultant FTI Consulting Inc. that appear to have influenced the proceedings.

According to the filing, Shannon was counsel to Silver Point, and one of his engagements of behalf of Silver Point was a company managed by FTI.

The shareholder said Shannon's bias in the proceedings has delayed and limited discoveries and narrowed the scope of examinations.

Specifically, he said the judge has not allowed the formation of a shareholders committee and has not authorized any probe into illegal trading.

Additionally, Amr said even when fraud was uncovered, Syntax-Brillian and chief executive officer Gregory Rayburn were not held accounting for their role in covering up the fraud.

"The proceedings in this filing have largely been run for the benefit of Silver Point," Amr said.

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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