Graphics workstation and video server vendor Silicon Graphics Inc. (SGI) has filed for bankruptcy protection in U.S. Bankruptcy Court in Manhattan and says it has reached an agreement with major creditors on a reorganization plan aimed at eliminating some $250 in debt.
SGI, whose workstations were once the gold standard for high-end graphics and special effects applications, has steadily lost market share to Windows-based systems with high-speed processors that can deliver similar performance at a much lower cost.
The Mountain View, Calif.-based company says it has reached agreement with all of its senior secured bank lenders and with holders of a significant amount of its senior secured debt on the terms of the reorganization plan. It says it expects to file its plan of reorganization reflecting the agreement shortly, and emerge from Chapter 11 within six months.
SGI says the Chapter 11 proceedings and reorganization plan will not affect day-to-day customer and partner relationships, and that its overseas subsidiaries were not included in the filing.