Printed from http://www.electronista.com

SGI files for Chapter 11, agress to $25m buy-out

updated 06:10 pm EDT, Wed April 1, 2009

SGI files for Chapter 11

Silicon Graphics Inc. (SGI), which is in bankruptcy protection, has agreed to sell its business to Rackable Systems Inc. for $25 million, unless it receives a higher bid from elsewhere. Rackable makes servers and data-center storage products and would take on certain liabilities and debts associated with SGI, the WSJ reported on Wednesday. The offering represents a 15 percent premium on SGI shares as of their closing on Tuesday.

SGI has said in the court papers that it has struggled with legacy issues from the first restructuring since it has last exited bankruptcy protection in October of 2006. Other names problems included increased competition and delays in the introduction of new technology.

SGI's Chapter 11 petition listed $390.5 million in assets and $526.5 million in debts, sums that include 14 of its subsidiaries. As of March 1st, SGI employed 1,200 workers.

The company is best known for its extremely high-performance visual rendering workstations and servers in the 1990s, but it struggled to compete in recent years as commodity hardware eventually claimed much of the same performance at lower prices. SGI eventually began selling customized systems based on AMD and Intel processors but never recovered its earlier position.



By Electronista Staff
toggle

Comments

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

Sponsor

Recent Reviews

Sound Blaster Roar Bluetooth speaker

There could very well be a new king of the hill for Bluetooth speakers, with Sound Blaster's recent entry into the marketplace. Bringi ...

Kenu Airframe Plus

Simple, stylish and effective, the Kenu Airframe + portable car mount is the latest addition to Kenu's lineup. Released earlier this y ...

Plantronics Rig Surround 7.1 headset

Trying to capture the true soundscape of video games can be a daunting task. Looking to surround-sound home theater options, users hav ...

Sponsor

toggle

Most Commented

 
toggle

Popular News