SGI Asks Court To Declare LGE Patent Suit Valueless

Law360, New York (September 27, 2006, 12:00 AM EDT) -- A patent infringement suit filed against bankrupt chipmaker Silicon Graphics Inc. by LG Electronics should be treated as valueless in the company’s Chapter 11 proceedings in order to preserve funds for unsecured creditors, the company has argued.

SGI has asked a bankruptcy court to value the suit at zero dollars, in order to “ensure timely distribution of a limited fund to general unsecured creditors.”

Before distribution can begin, the court must place a value on the lawsuit in order to determine how much creditors will recover....
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