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Attend Sept 3rd Hearing Determine Scope of Examiner Investigation -Breach of Securities Laws Fraud
1 year ago

Date: August 28, 2008

Subject: Attend Next Court Hearing- September 3, 2008 at 10 am


TO: 535 shareholders + 65 shareholders of the second petition


From: Amr M Amr, Petition Organizer and BRLC Shareholder

email: amramr2@gmail.com

The Court will NOT do anything, unless shareholders ask!


Shareholders, EVEN IF YOU SOLD, Plan to Attend the Hearing Wednesday September 03, 2008 10:00 AM

(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

Please try to attend the September 3rd, at 10 am hearing in Wilmington, which 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.

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




This post was modified from its original form on 28 Aug, 11:52

This post was modified from its original form on 28 Aug, 11:55
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