Syntax-Brillian Corporation

The Company

Syntax-Brillian Corporation (S-B or the Company) was a leading designer, developer, and distributor of high-definition televisions (HDTVs). Under the Ölevia brand name, S-B sold HDTVs in a broad array of screen sizes to international, national, regional, and online consumer electronics retailers and distributors. Through these sales channels, S-B sold Ölevia HDTVs designed to meet the individual needs of a variety of end-user consumers, including consumers in the price-conscious, high-performance, and high-end home theater markets.

The Situation

S-B filed for Chapter 11 bankruptcy protection on July 8, 2008. Working together with S-B’s first lien senior secured lender (the Lender), the main impaired creditor in the filing, S-B engaged KPMG Corporate Finance LLC to find a suitable buyer for the Ölevia brand and related assets in order to create liquidity for the Lender. The sale environment was difficult as it was a particularly challenging time for the consumer electronics industry and S-B was in the midst of discontinuing its operations. S-B engaged KPMG Corporate Finance with the mandate to go to market, find a buyer, assist in negotiating the best deal possible, and close a sale despite the fact that there was minimal operating support of the brand.

The Transaction

KPMG Corporate Finance conducted a competitive, expedited auction process that generated interest from several diverse counterparties, including liquidators, private equity firms, and strategic investors. KPMG Corporate Finance coordinated management meetings and due diligence, and assisted the Company and Lender in successfully negotiating a sale to Emerson Radio Corp. (AMEX: MSN) (Emerson) pursuant to Section 363 of the United States Bankruptcy Code and a Chapter 11 Plan of Reorganization. Emerson is a 60-year-old publicly traded company based in Parsippany, New Jersey that engages in the design, sourcing, importing, marketing, selling, and licensing of various consumer electronic products.