Silicon Graphics files for Chapter 11 bankruptcy protection

Silicon Graphics files for Chapter 11 bankruptcy protection

High-end computer vendor Silicon Graphics Inc. (SGI) has filed for Chapter 11 bankruptcy protection.

The company said in a statement that they have reached an agreement with all of its major debt holders, which allows them to reduce its debt by $250 million as part of the move.

SGI was once the dominating players in the servers, workstations and visualization systems market but their businesses have been struggling for many years now. Just recently, they were de-listed from the New York Stock Exchange for trading below the minimum $1 per share.

SGI Chairman and CEO Dennis McKenna said in a statement: “We want to assure our customers, our employees, and our communities that SGI is operating business as usual. This is a necessary and responsible step that will strengthen the company and foster a sustained turnaround at SGI. This milestone marks a fundamental and comprehensive change.”

The company had recently laid off about 250, or 12 percent of its workforce and things have bad for them since quite a long time.