Block Round 2 Syntax Brillian (BRLC) Chapter 11 filing by the Court

Update November 17, 2008 Court Hearing (by Montraj)

I walked out of court today knowing that there is something deeply troubling about the system. The motion was turned down by the judge. The interesting thing is that they did not contest any of the facts I presented as compelling cause for Rayburn to file an amended declaration.

As a sign of contempt for the motion, Rayburn did not even bother to show up in court.

The only defense submitted was that the declaration did not have to be complete and that "it served no purpose to amend it."

This is an outrage. Rayburn is basically getting away with perjury. The essence of the courts decision is that it granted him the right to file a partial declaration that ommited the fact that he 'forgot' to mention that the company went under due to fraud and the illegal conveyance of funds.

This was a bad day for justice. The objective of the order to compel Rayburn to file a true, complete and accurate declaration was to prove that it was not only the Taiwan cabal of swindlers that was responsible for our loss. Rayburn and Silver Point were enablers.

In fact, it is quite clear in my mind that the bankruptcy was designed to paper over fraud and pass off the systematic looting of the company's treasury as a 'failed business plan.'

I just got home from court. From here, we move into the next stage. Don't give up yet. Hold on because I've got a few more aces up my sleeve. Watch out for the next motion. Things are about to get interesting. I will have to consult with a few of you - off the message board - before launching our next move.

For those of you who are not familiar with the motion in question, I urge you to spend the time to read docket 629. The best is yet to come.

More later.


Attend Next Hearing: September 3, 2008 at 10 am hearing in Wilmington.

Hearing will determine whether we get credible answers to the following questions. An independent examiner will be assigned, and the scope and budget of the investigation will be determined at that hearing. If you are there, it could make a difference on the outcome.

9/3/2008 at 10 AM

US Bankruptcy Court - District of Delaware,

824 N. Market Street

6th Floor, ROOM 1,

Wilmington, DE 19801

302-252-2900

If you can not be there, now is the time to write a letter and Fed Express it to the judge and the US trustee.

Demand transparency in this rushed process - we have been left completely in the dark as to how so much equity evaporated so fast. The last time we received a financial report was for the quarter ending 9/30/2007, and even that report is suspect - current management has advised us that its unreliable.

During the bankruptcy hearings, current management under FTI has treated shareholders with disdain. Greg Rayburn has given us a narrative of a business model that proved to be unprofitable. Greg Rayburn insisted the sale be rushed to preserve the value of the estate. Did FTI and Silver Point have a vested interest in driving the company into bankruptcy?

Although the TCV deal is done, if it involved questionable conveyance of assets, we would have grounds for litigation. Consider the accounts receivables transferred to TCV. The accounts receivables they were around 100 million dollars mostly owned by SCHOT and Olevia Far East. It was deemed "worthless" and uncollectible.

The investigation needs to identity all the owners of SCHOT and Olevia Far East. We do not know where the boundaries are between Kolin, Digimedia, TCV, SCHOT and Syntax Brillian. Was TCV at "arms length" in the deal? Was James Li involved in it and to what extent?

The Chinese Olympics inventory (also been deemed worthless) is now supposedly held by Kolin or in customs. This inventory was conveyed to TCV in the expedited fire sale of assets. While Tooling deposits at Kolin remain in the estate, Kolin is under investigation for insider trading by the Taiwanese government. Given the loose regulations and corruption in Taiwan, you have to go out on the edge to invite an investigation by regulators. Kolin CEO, Christopher Liu, was on the board of Syntax-Brillian and actually chaired its audit committee.

Other issues deserving a probe, include insider trading and short selling by Silver Point, Kolin or TCV. How much short selling was by parties domiciled in Taiwan? Was the Silver Point loan structured to fail?

Finally, why did the previous and current management deceive us with promising press releases? I need only mention the Compal and SRS deals. Right to the very end, the Syntax-Brillian investor relations department reassured investors that the company would be coming out with transparent financial statements.

The probe needs to determine if there was a breach of securities laws and fraud by the directors and executives of Syntax-Brillian, which we have waited in vain for the SEC to determine. Our last hope is the justice system. Last I heard, we still live in a country where laws apply to one and all. Here is a good chance to find out if we still live in that country.

Again, even if you sold, please plan to attend the September 3, 2008 10 Am Hearing - it could make a difference on the outcome.

SHAREHOLDER: Be sure to file your "PROOF OF CLAIM FORM" by September 8, 2008 with EPIQ. In the form, under "Basis of Claim" shareholders MAY want to enter "Damages resulting from Debtors Breach of Securities Laws, Fraud & Misrepresentation". If you need to obatin a Proof of Claim, its availble from EPIQ's site : http://chapter11.epiqsystems.com/Documents.aspx

_____________________________________________

Please ATTEND August 20, 2008 11:30 AM Court Hearing in Delaware:
Regardless of whether you sold your shares or not, you have a stake and can influence what happens in restoring or recouping more of your investment, than is currently being offered.

Your attendance will also substantiate our request for a "Shareholder Committee" to be appointed/created.

All Shareholders that are near (can drive, train, walk, or fly) Delaware MUST  attend Wednesday's Court Hearing:
Date: August 20, 2008 11:30 AM - (arrive 1 hr early for security lines, etc.)

US Bankruptcy Court for the District of Delaware, 824 N. Market Street
6th Floor, ROOM 1, Wilmington, DE 19801
302-252-2900 (main)

Attendees: Our best hope is with the Appointment of an Indepandant Examiner, as requested by the US Trustee's office, and approved by the Judge on August4, 2008. . The Indepandant  Examiner will fully vet all thats happening in the past 9 months, and at the Courts request have the SEC and other agencies detemine where all the assets went, obtain a full disclosure of what the relationship(s) are between: vendors, affiliates, partners, Hedge funds, current, past, and interim management, etc.
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Petition 2:
Block Round 2 - Syntax Brillian Chapter 11/Case No. 08-11407 (BLS)
Shareholders: Do NOT sign this Petition if you already signed the original

Second Set of Unique Signatures in support of Previous Petition

Dear Mr. Kenney,
The attached petition and comments are being forwarded to the US Bankruptcy Court for the District of Delaware, and the Office of the United States Trustee (Mark Kenney, Esq.), and is signed by over .... investors that have been defrauded by Syntax-Brillian's Management. We  respectfully request that the sale to a shell corporation and Bankruptcy approval be stayed until the SEC and other regulatory agencies can conclude an investigation for suspected fraud. We would like the court to appoint an independent examiner to assess the value of the company and any assets that have been sold under the management of Greg Rayburn, and appoint a shareholders committee to represent our interests.

We, 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 SB 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.