Syntax-Brillian shareholder seeks official committee representation, claims recovery possible

By Caroline Salls

Pittsburgh, Jan. 26 - Syntax-Brillian Corp. shareholder Charles M. Cerny asked the U.S. Bankruptcy Court for the District of Delaware to appoint an official shareholders committee for the company's bankruptcy case, according to a Friday court filing.

According to Cerny's motion, the company has contended that its shareholders are "out of the money." However, Cerny said this is a misconception.

Specifically, Cerny said the company could stand to recover more than $1 billion from fraud litigation, which "would allow a deluge effect that would pour over into shareholder pockets." Even if less is recovered from the fraud claims, Cerny said shareholders should at least be able to recoup some of their losses.

In addition, Cerny said Syntax-Brillian could consider restarting its company, rather than continuing with a "fire sale mentality."

Cerny said the company's shareholders have not been adequately represented in the bankruptcy case.

"In spite of the fact that shareholders have been given little or no access to prove they are in the money, they have proven that there is more than a slim chance of recovery for them," Cerny said in the motion.

"Shareholders do have a chance to recoup their losses, and with an equity committee shareholders may."

A hearing is scheduled for Jan. 28.

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, 2008. Its Chapter 11 case number is 08-11407.

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