Syntax-Brillian asset purchaser pulls out of sale agreement amid breach allegations, seeks return of deposit

By Caroline Salls

Pittsburgh, Sept. 10 - Syntax-Brillian Corp. asset purchaser Olevia International Group, LLC asked the U.S. Bankruptcy Court for the District of Delaware to rule that Olevia is not obligated to follow through with its asset purchase obligations because Syntax-Brillian allegedly breached the purchase agreement, according to a Wednesday court filing.

Specifically, Olevia said Syntax-Brillian has breached the purchase agreement by failing to make a $3.5 million payment on a DigiMedia Essential claim, failing to pay license, royalty and registration fees on intellectual property and failing to maintain its contracts with Technology Resource Group, Inc.

In addition, the purchaser said Syntax-Brillian did not honor a covenant that keeps it from entering into a new contract related to the purchased assets without the buyer's consent.

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

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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