|Soyo Files For Bankruptcy|
|Written by HDGuru|
|Wednesday, 10 June 2009|
Soyo Files For Bankruptcy
In an SEC filing this past Monday, Soyo Group Inc., the maker of Soyo and Honeywell branded HDTVs (Link) announced that it has sought Chapter 7 bankruptcy protection. The company has ceased all operations and its CFO has resigned according to the notice.
Attempts to contact Soyo by phone were unsuccessful. Honeywell Corp. has yet to respond to an inquiry as to its future HDTV plans or its willingness to cover the Soyo/Honeywell 5 year warranty. Soyo sold most of its Honeywell HDTVs through Home Shopping Network. Below is a copy of the SEC 8-K filing.
On April 30, 2009, Vasquez & Company LLP ("Vasquez") resigned as the Company's auditors. Vasquez did not issue an audit report for the year ended 2008. During the audit for the year ended 2008, Vasquez had a disagreement or difference of opinion with employees and senior management of the Company because they significantly expanded the scope of their audit for further investigation going as far back as the year ended 2007 and interim quarterly periods ended in 2007.
In addition, Vasquez advised the Company that "our audit report for the year ended 2007 and our pre-issuance review procedures for the interim quarterly periods ended in 2007 and interim quarterly periods ended in 2008 should no longer be relied upon."
On May 5, 2008, the Company discontinued all operations and filed for Chapter 7 bankruptcy protection. The petition was filed in the United States Bankruptcy Court, Central District of California, Riverside Division, Case number 09-19355-RN. A Chapter 7 trustee has been appointed by the Bankruptcy Court to administer the Company's assets and liabilities.
The Company has defaulted on all loans owed to creditors, including loans in the approximate outstanding balances of $24,000,000 and $1,500,000 owed to United Commercial Bank, the Company's primary creditor. The Company has not paid interest or principal on the loans since March of 2009. Pursuant to the Company's stipulation to the application of UCB in the Superior Court, San Bernardino County, Case number KC055623, Kenneth Krasne has been appointed as receiver for those assets of the Company that constitute collateral for its loan from UCB, which collateral includes almost all of the Company's accounts receivables and inventory, and equipment.
On May 10, 2009, the Company accepted the resignation of Nancy Chu as the Company's Chief Financial Officer and a member of the Board of Directors. Source: HDGuru