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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.

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