SGI will be emerging from chapter 11. It is getting coverage from the AP, Reuters, CNN, etc. Could be a big rebound this week...
AP
Silicon Graphics Reorganization OK'd
Tuesday September 19, 8:56 pm ET
By Michael Liedtke, AP Business Writer
Silicon Graphics Bankruptcy Reorganization Wins Court Approval
SAN FRANCISCO (AP) -- Silicon Graphics Inc.'s proposed comeback from bankruptcy won court approval Tuesday, giving the maker of high-powered computers a chance to rekindle the technological wizardry that once made it a Silicon Valley star.
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Now that U.S. Bankruptcy Judge Burton Lifland has signed off on SGI's reorganization plan, the Mountain View-based company is hoping to reverse years of losses by selling more products while also reaping the benefits of dramatically lower expenses.
"The company has been in a defensive position for a long time," SGI Chairman Dennis McKenna said during a Tuesday interview. "Now we are in a position to become an offensive company again."
With its reorganization plan officially approved, SGI expects to formally shed the shackles of bankruptcy next month. The company filed for Chapter 11 protection in May, listing $369 million in assets and $664 million in debt.
The bankruptcy marked a sobering comedown for SGI, which was hailed for the technological elegance of computers that generated then-revolutionary special effects in films such as "Jurassic Park" during the early 1990s.
But buzz surrounding SGI faded as personal computers became more sophisticated and less expensive, reducing the demand for the company's pricier products.
SGI wound up losing nearly $1.7 billion in the 6 1/2 years leading up to its bankruptcy.
Things got so bad that SGI abandoned its sprawling corporate campus in Mountain View a few years ago and turned over the keys to online search engine leader Google Inc.
SGI now occupies smaller offices near its old home, but is considering moving its headquarters to Sunnyvale.
McKenna sees brighter times ahead because the company has trimmed $150 million from its annual expenses and sharpened its focus on the scientific and government customers that account for most of its sales.
The cost-cutting has trimmed SGI's payroll from about 2,200 employees in February to roughly 1,600 workers today.
As part of its recovery, SGI hopes to be listed on the New York Stock Exchange or Nasdaq Stock Market in the near future, McKenna said.
The company's shares were dropped from the NYSE late last year after the stock price fell below $1 for a prolonged stretch. SGI's shares closed at 2 cents Tuesday on the over-the-counter market.
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