Silicon Graphics Gets $130M In DIP Loans

Law360, New York (June 27, 2006, 12:00 AM EDT) -- A bankruptcy court approved up to $130 million in debtor-in-possession loans from several bondholders for Silicon Graphics Inc., allowing the high-end computer manufacturer to proceed with its Chapter 11 restructuring.

SGI will use the loan to finance company operations during its bankruptcy, pay off $76 million to pre-bankruptcy lenders Wells Fargo and Ableco Finance, and pay off $28 million it owes under another DIP loan from the same bondholders, Quadrangle Master Funding Ltd., Watershed Technology Holdings LLC and Encore Fund LP.

After falling into bankruptcy protection...
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