Attend October 16, 2008 Next Court Hearing - 9:00 AM - ALL
The Judge will NOT do anything, unless shareholders ask!
All Shareholders Attend Hearing
Thursday October 16, 2008 9:00AM
(Arrive 1 hr early for security lines)
US Bankruptcy Court - District of Delaware,
824 N. Market Street
6th Floor, ROOM 1,
Wilmington, DE 19801
302-252-2900
On 10/6/2008 Independent Examiner James Feltman presented evidence of fraud including - detailed invoices, bills of lading, purchase orders, etc. that led to the Chapter 11 filing. Now the estate is trying to DENY the examiner the resources to complete his investigation.
It has taken us three months to just get the court to allow for a preliminary examination and the results clearly indicate there was fraud. We need to push for a better financed and more comprehensive examination. This is just the tip of the iceberg.
Attend the Hearing Thursday October 16 at 9:00 AM in which the estate will present their internal investigation.
Where are re-tooling deposits?
Where are Silverpoint s transactions details and were they privy to insider info via Greg Rayburn/FTI?
Why are the parties that may have committed fraud obtaining OUR company for 6 cents on the dollar)?
____________________
Attend September 3, 2008 Next Court Hearing - 10:00 AM - ALL Shareholders please plan to attend, if you can.
Attend October 16, 2008 Next Court Hearing - 9:00 AM - ALL
The Judge will NOT do anything, unless shareholders ask!
All Shareholders Attend Hearing
Thursday October 16, 2008 9:00AM
(Arrive 1 hr early for security lines)
US Bankruptcy Court - District of Delaware,
824 N. Market Street
6th Floor, ROOM 1,
Wilmington, DE 19801
302-252-2900
On 10/6/2008 Independent Examiner James Feltman presented evidence of fraud including - detailed invoices, bills of lading, purchase orders, etc. that led to the Chapter 11 filing. Now the estate is trying to DENY the examiner the resources to complete his investigation.
It has taken us three months to just get the court to allow for a preliminary examination and the results clearly indicate there was fraud. We need to push for a better financed and more comprehensive examination. This is just the tip of the iceberg.
Attend the Hearing Thursday October 16 at 9:00 AM in which the estate will present their internal investigation.
Where are re-tooling deposits?
Where are Silverpoint s transactions details and were they privy to insider info via Greg Rayburn/FTI?
Why are the parties that may have committed fraud obtaining OUR company for 6 cents on the dollar)?
____________________
Attend September 3, 2008 Next Court Hearing - 10:00 AM - ALL Shareholders please plan to attend, if you can.
Date: July 18, 2008
Office of the United States Trustee
Attn: Mark Kenney, Esq.
844 King Street, Room 2207
Lockbox #35
Reference: Chapter 11 filing for Syntax-Brillian Case No (08-11407)
Wilmington, DE 19899-0035
Phone: 302-573-6491
Fax: 302-573-6497
Mr. Mark Kenney, Esq.
Please read this petition and comments signed by over 400 investors that have been defrauded by Syntax-Brillian's Management. In particular, these two comments (#92 and #240) are particularly relevant:
# 92: Jul 11, 2008, William Kirkpatrick, Wisconsin
"The proposed sale of the assets was not approved by the shareholders and given the concern that the Board of Directors may have fraudulently stripped the company of assets through transactions over the course of the past year, the sale should be stopped until the courts have reviewed the documents for fraud. The court has an obligation to respect and allow the shareholders rights to legal representation in these proceedings prior to authorizing a transfer of valuable assets beyond the legal system's purview. By authorizing a sale, intangible assets, i.e. the name of Olevia, will have been given away without a proper determination of its value. It is obvious that these intangible assets have been improperly assigned a zero dollar value. The courts cannot have complicity by the approval of a suspected fraudulent action. Your consideration of this petition in this matter is more than just a courtesy, it is your duty. I respect that you will discharge your duty with respect for the laws with this reasonable response from the shareholders."
#240 Jul 14, 2008 Gregory Rice Leamington ON, Canada
"As part of the court's consideration of this surprising BK action it is hoped that the court consider the suspicion that Chinese interests use the US equity markets as a method of siphoning off US investment capital and redirecting it home. The methods used include: the direct sale of stock by listing the company as American and listing on the US stock markets while maintaining total Chinese control; using Hedge Funds to short the stock in a guaranteed win (knowing they would declare Bankruptcy) in return for a piece of the action; have the company invest in other Chinese companies; and purchase supplies from Chinese companies all as further ways to direct cash back to Chinese interest."
With the interest of the following 400 investors (as well as others), we respectfully request that the sale to a shell corporation and Bankruptcy approval be stayed until the SEC can conclude its investigation.
Amr Mahmoud Amr,
Petition Organizer & BRLC Shareholder
9120 49th Avenue NE
Seattle, WA 98115
(206) 517-5118 (h) | (206) 669-5362 (c) | (206) 448-2139 (w)
________________________________________________________
Dear Mr. Kenney,
We the undersigned, as common shareholders are holding a significant number of shares in Syntax-Brillian (SB). The acting CEO, Mr. Rayburn, has indicated that the common shares will be worthless after the Chapter 11 reorganization and the sale of the company to a privately-owned Olevia International Group, LLC.
The shareholders, who invested their hard-earned money based on what they were told by the company, deserve some equity in the new entity, despite Mr. Rayburn s efforts to wipe us out. Mr. Rayburn appears to be using the Chapter 11 system simply to expedite the sale of the company and erase existing shareholders investment. The shareholders have not seen any financials in months; however, we were told less than a year ago that the company expected revenue to be over ONE BILLION DOLLARS for 2007. How is it that Syntax-Brillian was unable to pay their electric bill? Where did all that revenue go?
We were told that the new contractor had an initial order to manufacture 300,000 units, with a 2008 goal of 1 million of the Olevia brand televisions. We were told that a new built-in surround sound system was in the pipeline of new products. The Olevia brand is sought after and was rated as a "Best Buy" by Consumer Reports. Insiders had been buying shares in 2008 at much higher prices.
Out of the blue, Mr. Rayburn filed for Chapter 11. The company is in debt for $60 million. What has the company done with their projected ONE BILLION DOLLARS in revenue for 2007? What has happened to the shareholders' equity? We have been kept in the dark far too long. The financials should be carefully scrutinized by the Court before any sale is allowed to go through.
We would respectfully request that a Committee be formed on behalf of the shareholders to investigate this entire transaction, and would request an answer as to whether or not the filing of the Chapter 11 was a necessary move for the company in order to remain solvent. There are many conflict-of-interest and outright fraud issues that should be investigated as well, including the role of Silver Point and the actions of the former corporation, Three Five Systems, from which SB was formed, as well as the insiders and officers of both companies.
We have a right to demand answers. Until the BK notice came up, all we had to go with was the last conference call in November 2007. We do not trust this management to do the right thing. If we must go into Chapter 11, we should not do it under this management. We demand a new board that takes our interests into consideration.
Syntax-Brillian could not lose $375 million in only 3 quarters of time. Impossible they lost at such a short time frame nearly all receivables and tooling deposits. Reality is they stole the money (tooling deposits) by accounting probably a tenfold the real amount necessary. That is why the business model collapsed. They were sophisticated thieves. And astonishing nobody here seems to realize. SB simply transferred all the money to the chinese and taiwanese companies under the umbrella of tooling deposits. Receivables so called not able to be collected from SCHOT stayed in Hong Kong.
As investors, we understand the risks involved; however in this case, with the Olevia brand that is growing in name recognition, popularity, and sales, the common shareholders deserve to receive some equity from the proposed sale of Syntax Brillian AND the alleged sale of the Vivitar unit, and until a satisfactory resolution can be made in favor of the shareholders, the SALE of the company should be blocked by the Court.
We the undersigned request that the Court Block the SALE of the company and the Chapter 11 filing.
Respectfully submitted,
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