UPDATE 1-Syntax-Brillian files for Chapter 11 bankruptcy

The company said its business had eroded in the face of defaults under a lending agreement, a U.S. Securities and Exchange Commission enquiry and the loss of confidence of suppliers, vendors and employees.

Syntax-Brillian, whose shares have crashed more than 91 percent over the past year, tried to raise capital, refinance debt and restructure its business -- all of which proved impossible, according to court papers.

The company said on Tuesday Michael Garnreiter is the sole remaining member of its board of directors. Gregory Rayburn, who became interim CEO after the company fired James Ching Hua Li earlier this month, will remain in the position.

The Chapter 11 filing includes all of the company's units except digital camera unit Vivitar, which it plans to sell.

Shares of the company closed at 46 cents on Monday on Nasdaq. (Editing by Rory Channing and Sue Thomas)