Silicon Graphics goes belly up, files for Chapter 11


Silicon Graphics goes belly up, files for Chapter 11

Antony Savvas

Silicon Graphics has filed for Chapter 11 bankruptcy after continuing to lose money.

The high-performance computer company is attempting to re-structure its operations to enable it to survive, but it has reported yet another loss-making quarter.

The company, though, says it has reached an agreement with some major lenders to reduce its debt by around $250m (£147m) as part of the restructuring.

Preliminary third-quarter financial results show sales of $108m for the three months ended 31 March, down from the $159m in the same quarter last year.

Silicon Graphics’ net loss for the quarter was $43m, compared with the $45m lost in the corresponding quarter last year.

The company’s operations outside the US, including those in Europe, are not covered by the Chapter 11 bankruptcy.

Silicon said it was hoping to come out of bankruptcy within six months.

Chapter 11 bankruptcy protects a US company from being immediately closed down by its creditors.

Silicon Graphics chief executive officer Dennis McKenna said, “We want to assure our customers that Silicon Graphics is operating, business as usual.”

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