Silicon Graphics Inc. has filed an amended reorganization plan and hopes to exit Chapter 11 bankruptcy in September, the company said Wednesday.
After a string of quarterly losses, the high-performance computing vendor slashed its workforce by 12% earlier this year and then filed for bankruptcy protection in May as it sought to return to profitability. SGI’s plan to emerge from bankruptcy has yet to be approved by the court; a hearing is set for July 27.
Under the proposed plan, SGI would exit Chapter 11 as a public company with a new credit facility and its total debt slashed from $345 million to $70 million. The plan is based on a worldwide settlement agreement between the vendor and its creditors. Under the terms of the plan, SGI’s current shareholders will receive no recovery.
One area in which SGI had faced mounting competitive pressure is from an increase in lower-cost, x86 systems used in high-performance computing cluster. SGI last month announced it would get into the game with the launch of its own x86-based server, based on Intel’s new dual-core Intel Xeon 5100 processor. The server is set to ship in August.
