Syntax-Brillian Appears Teetering on the Brink of Disaster

Syntax-Brillian (BRLC), maker of Olevia brand LCD televisions, is in deep financial trouble.

In an 8-K filing with the SEC Thursday night, the company disclosed a letter from Silver Point Finance, as agent for a group of lenders, which said that “certain Events of Default have occurred and are continuing under” a credit agreement in which Syntax-Brillian owes more than $137 million.

The filing also includes an amended credit agreement which adds a host of severe new strictures on the company’s financial behavior. The new loan provisions sets a mid-teens interest rate, establish an “operational advisor” to oversee cash management at the company, restricts access to additional credit, requires weekly reports on where the cash is going and a host of other requirements.

In short, it looks like the company is teetering on the brink of disaster.

In after hours trading, BRLC fell 56 cents, or 37.1%, to 95 cents.

Comments

[Steve Smith:]

Wow ... the master of the obvious.

As if any investor couldn't figure that out after seeing yesterday's stock action.

How about adding a little analysis to your "the sky is falling!!!" routine?

2008 Feb 23 10:15 AM

[mike2008:]

news come from taiwan
news.chinatimes.com/.....
1) Syntax will be not delisted
2) TECO/Kolin stated
that the business will not be affected.
3)bank in Taiwan will supply
finance
4)During last quarter, Syntax hold 4.5% of Market, No.8 on the list.
5)Due to the subprime mortgage, most of the retailer's
AR changed from 60 days to above 100 days.
That Is all Promblem Start.
6) The new independent director will report to the company shortly.
7) kohli made 120 milliom lcd last year
This year will be 150 milliom.

2008 Feb 26 07:12 PM