Sad news for the ex-poster-child of everything that was cool about computers and the internet in the 90s. SGI Invented the OpenGL standard, which drove the development of the graphic card industry. That same industry made SGI’s expensive technology obsolete. And it was all downhill from there.
Silicon Graphics announced on Monday that it has reached an agreement with all of its Senior Secured bank lenders and with holders of a significant amount of its Senior Secured debt on the terms of a reorganization plan that will reduce its debt by approximately $250 million.
As part of this agreement with many of its major stakeholders, and as the next step in its previously announced plan to reorganize its businesses, the company and its U.S. subsidiaries have filed voluntary petitions under chapter 11 of the U.S. Bankruptcy Code. SGI’s non-U.S. subsidiaries, including European, Canadian, Mexican, South American and Asia Pacific subsidiaries were not included in the filing; will continue their business operations without supervision from the U.S. courts; and will not be subject to the requirements of chapter 11. The company expects to file its Plan of Reorganization reflecting the agreement shortly, and to emerge from Chapter 11 within six months.
“We want to assure our customers, our employees and our communities that SGI is operating — business as usual,” said Dennis P. McKenna, the recently appointed, Chairman and CEO of SGI. “Our customers can continue to rely on SGI for its mission-critical products, services, and support.”