07.08.2008 — Syntax Brillian has filed for Chapter 11 bankruptcy just over two months after saying it would cut positions and realign its workforce.

The TV and digital camera maker said the cuts would reduce costs by 20 percent, resulting in annual savings of approximately $4 million.

The Tempe, Arizona-based seller of Olevia HDTVs also signed a deal to sell certain assets to a new company called Olevia International Group LLC, which will assume $60 million of its debt.

The company has seen its shares crash more than 91 percent over the past year.

Syntax Brillian says its "business has eroded in the face of defaults under a lending agreement, a U.S. Securities and Exchange Commission enquiry and the loss of confidence of suppliers, vendors and employees."

The Chapter 11 filing includes all of the company's units except digital camera unit Vivitar, which it will sell.

Syntax Brillian was formed on November 30, 2005. The company's assets were about $175.7 million, against total debts of about $259.4 million at the beginning of June, according to court papers.