Silicon Graphics: The End of HistoryBy Angsuman Chakraborty, Gaea News Network
Friday, May 12, 2006
Silicon Graphics has filed for bankruptcy protection. The significance of this news would be lost to newcomers in the industry. It signifies the end of an era, an epoch of computer history.
SGI filed for bankruptcy under Chapter 11 of the U.S. bankruptcy code after reaching an agreement with its banks and other bondholders. Through its bankruptcy filing and reorganization plan, the company will reduce $250 million of its total debt. Its non-U.S. subsidiaries in Europe, Canada, Mexico, South America and Asia Pacific were not included in the filing. McKenna said SGI expects to emerge from bankruptcy within six months.
SGI is a legendary Silicon Valley company whose supercomputers created Hollywood special effects in the 1990s, developed supercomputers used by NASA, oil companies and other clients. It has stumbled for several years as customers have turned to cheaper computers.
As a result of the bankruptcy deal, SGI’s shares, which are currently trading in the over-the-counter market, will no longer trade and have no value. As of Friday, its shares were trading at 32 cents a share. In November last year, the company’s shares were de-listed from the New York Stock Exchange.
“It’s business as usual,” McKenna said. “We do not expect any disruption in our business. This is a pre-negotiated local process to allow us to fix the legacy cost structure of the company.”
via Mercury News
Personally I think SGI has reached the end of road.