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Kolin says shipments will not be affected by partners troubles

Television maker Taiwan Kolin Co (歌林) said yesterday its shipments to the overseas markets would not be impacted by the latest bankruptcy protection announcement from its US partner Syntax-Brillian Corp.

Kolin produces flat-screen TVs for Syntax-Brillian, which is known as the vendor of high-definition televisions behind the Olevia-brand liquid-crystal-display (LCD) TVs in the North America, New Zealand, Australia, the Philippines, Singapore, Malaysia, Japan, Hong Kong, Macau and China.

On Monday, Syntax-Brillian announced it would file for Chapter 11 bankruptcy protection in Delaware.

The Tempe, Arizona-based company said it would also sell certain assets and debts to a newly created company called Olevia International Group LLC (OIG) for US$60 million, according to Kolin’s stock exchange filing yesterday.

OIG is owned by Taiwan’s TCV Group (同濬集團) which is also a major component supplier for both SBC and Kolin in terms of digital televisions’ industrial design, molding and plastics injection.

“Kolin will continue its strategic alliance with the [Syntax-Brillian’s] new company [OIG] and its parent TCV Group to jointly develop and control the global distribution of Olevia brand,” the company said in the filing.

Kolin holds a stake of around 8 percent in Syntax-Brillian. The home appliances maker said it would book NT$144 million in losses on its investment in Syntax-Brillian for the second quarter.

But Kolin assured investors that TCV Group will shoulder all Syntax-Brillian’s debts to Kolin.
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