Silicon Graphics Files For Chapter 11

Law360, New York (May 8, 2006, 12:00 AM EDT) -- Computer maker Silicon Graphics Inc. has filed for Chapter 11 bankruptcy protection, citing poor investments made in the 1990s and competition from industry rivals as reasons for its lackluster financial performance.

The company submitted its petition for bankruptcy in the U.S. Bankruptcy Court for the Southern District of New York after reaching an agreement with its bondholders to swap debt for equity in the restructured company.

Under the agreement, bondholders of the company’s 6.5% and 11.75% notes will exchange them for 25% of the new company’s...
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