Bay Area Based-Silicon Graphics Reemergence From Chapter 11 Approved By U.S. Bankruptcy Court
Silicon Graphics Inc. (SGI) plans to emerge from bankruptcy this month. The Mountain View-based computer business’s reorganization plan was approved by a US bankruptcy court last month.
SGI says it is receiving an $85 million term loan from Morgan Stanley Senior Funding Inc. and a $30 million credit line from General Electric Capital Corp. for its exit financing. SGI says the loan will pay off debtor-in-possession financing and provide working capital for its current operations.
SGI—the company that became famous for its high-powered graphic systems—filed for Chapter 11 protection last May when it reported $664 million in debt and $369 million in assets.
Filing Chapter 11 of the Bankruptcy code lets a bankrupt company reorganize it’s business so it can become profitable. The business continues running but must be supervised by a bankruptcy court.
Bookmark: 
