Syntax-Brillian Down After Credit Change

"The amendments, while likely necessary for its creditors to somewhat preserve their investment, have severely restricted Syntax-Brillian's ability to operate," wrote Canaccord Adams analyst Jonathan Dorsheimer in a note to investors Friday.

In a filing with the Securities and Exchange Commission Thursday, Syntax-Brillian said it amended its credit pact with certain lenders to establish a floor of 15.5 percent for interest rates on base rate loans. The amendments also require the company to make more than $8 million in payments, and according Dorsheimer, accept "a loss of operational autonomy."

"The difficult macro environment and company-specific issues such as a consistent lack of capital and negative free cash flow have come to a head for Syntax-Brillian," wrote Dorsheimer in a note to investors. He kept a "Hold" rating on the stock.

Syntax-Brillian shares fell 48 cents, or 31.8 percent, to $1.03 morning trading. They earlier hit a year low of 83 cents, below a previous low of $1.51 hit Thursday. The stock is down substantially since closing 2007 at $3.08.