SGI Takes Action to Reduce Debt

在 in2 @ Ptt2 看到的。

Taiwan CNET,

http://taiwan.cnet.com/news/hardware/0,2000064553,20106223,00.htm

Silicon Graphics公司8日宣布，已根據破產法第11章聲請破產保護，希望藉重整過程走出財務困境。


SGI一度是生意興隆的伺服器與工作站製造商，產品備受好萊塢與製圖業歡迎。該公司宣布，已向紐約南區美國破產法院聲請破產保護，不久後便會呈交重整計畫，希望在六個月內完成破產重整過程，並東山再起。

此外，SGI表示，已和債權人簽署協議，將依照重整計畫簡化資本安排，並打消大約2.5億美元的債務。


SGI執行長Dennis McKenna發表書面聲明說：「這是必要、而且負責任的一步，將強化本公司並支持SGI轉危為安。」

總部在加州山景城的SGI自成立以來，歷經風風雨雨，曾多次力挽狂瀾。

最近一次力圖振作，是在今年3月。當時SGI宣布裁員12%，並聘請新的財務長和營運長。McKenna年初受聘為執行長，上任後便積極推動這些整頓措施。McKenna表示，他希望SGI擴大進軍有高階運算需求的新消費者市場，例如電信市場。

在1999年上任的前執行長Bob Bishop任內，SGI也在2000年推行組織改造計畫，營運焦點不再鎖定銷售超級電腦、多媒體軟體和消費者裝置用的嵌入式晶片，而是轉向更小型的市場，例如數位內容製作和科技研究計畫專用的超級電腦。例如，SGI的技術在電影「魔戒」等內容的製作過程中扮演重要的角色。

更前一任執行長Rick Belluzzo也曾設法整頓SGI，包括裁減1,500個職務，並脫售Cray超級電腦部門。

儘管SGI自1990年代初期以來頻頻整頓，但仍然虧損連連，失去投資人的寵愛。去年底， SGI的股票自紐約證交所下市。（唐慧文）


SGI news,
http://www.sgi.com/company_info/newsroom/press_releases/2006/may/sgi_reorg.html

SGI Announces Pre-Negotiated Reorganization

MOUNTAIN VIEW, Calif., (May 8, 2006)—Silicon Graphics (OTC: SGID) today announced 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, greatly simplifying its capital structure.

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," Dennis P. McKenna, the recently appointed, Chairman and CEO of SGI, stated. "Our customers can continue to rely on SGI for its mission-critical products, services, and support."
This reorganization is planned with no disruption to day-to-day customer and partner activities as the Company positions itself to recapture mindshare and market share. Over the last 100 days, the Company under the leadership of its new management team has had several significant achievements. During this time it has:
Assembled a new management team including a new Chief Executive Officer and Chief Financial Officer, as well as the appointment of other experienced executives;
Closed on some significant sales orders reflecting continued customer confidence in SGI;
Completed a program that has resulted in $100 million in annualized cost savings with an additional $50 million in savings underway;
Identified additional paths to streamline operating and administrative costs;
Improved efficiencies in its manufacturing operations;
Strengthened and expanded its product roadmap; and
Implemented a plan to reposition its product and market focus to take advantage of the Company's significant technology and market potential.

"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," McKenna continued. "Our customers and partners want the Company to succeed because of the value SGI continues to bring to the disciplines and capabilities of discovery, innovation, engineering and information transformation which are at the center of the world's achievements and business processes."

"We expect to proceed quickly and will emerge from these proceedings with a significantly improved balance sheet and, as a result, greater operating flexibility. I am confident in SGI's future. The new direction I have set is comprehensive, the product portfolio we will unveil is expansive and our dedication to customer satisfaction is unwavering," McKenna added.

Certain holders of the Company's existing Senior Secured notes are providing SGI with a $70 million financing facility. The Senior Secured notes represent a majority of the Company's total outstanding debt. Subject to court approval, the proceeds from the financing together with cash generated from daily operations and cash on hand, will be used to paydown a portion of SGI's pre-petition debt and to fund operating expenses including post-petition supplier payments, employee wages and benefits, and other operating expenses.

The agreement contemplates that the Company's existing Senior Secured bondholders will be converting their existing debt into the new equity of SGI and, through a rights offering, will have the opportunity to purchase $50 million of additional new equity. The $50 million rights offering is being backstopped by certain of these bondholders to ensure that the Company raises the full $50 million of new equity capital. It is contemplated that the $50 million of new capital will be used to reduce debt and further enhance the Company's liquidity.

Upon confirmation of the plan, the new common stock of the Company will be issued to the holders of SGI's Senior Secured bonds in the manner described above. All of SGI's existing common stock and the unsecured subordinated debentures will be cancelled upon confirmation of the plan by the court and receive no recovery. Accordingly, the Company believes that SGI's currently outstanding common stock and unsecured subordinated debentures have no value.

McKenna concluded by stating "We regret the effect that this will have on SGI's shareholders and other unsecured creditors. SGI plays a critical role in the world's infrastructure. This needs to be preserved."

SGI's principal bankruptcy counsel is Weil, Gotshal & Manges LLP.

The filings were made today in the U.S. Bankruptcy Court for the Southern District of New York.

More information about SGI's reorganization is available on the Internet at www.sgi.com/reorg.

Forward-Looking Statements
This news release contains forward-looking statements relating to future events or expected financial performance that involve risks and uncertainties. Factors that might cause such a difference include, but are not limited to: the effects of our chapter 11 filing; our ability to maintain adequate liquidity; and our ability to obtain and maintain normal terms with customers, suppliers and service providers. These and other risks are or will be detailed from time to time in SGI's periodic reports that are filed with the Securities and Exchange Commission, including the Form 8K's filed today in conjunction with this announcement (and other announcements) and SGI's quarterly report on Form 10-Q for the quarter ended December 30, 2005. Silicon Graphics is under no obligation to publicly update or revise any forward-looking statements, whether changes occur as a result of new information, future events or otherwise.

SILICON GRAPHICS | The Source of Innovation and Discovery™
SGI, also known as Silicon Graphics, Inc. (OTC: SGID), is a leader in high-performance computing. SGI helps customers solve their computing challenges, whether it's sharing images to aid in brain surgery, finding oil more efficiently, studying global climate, providing technologies for homeland security and defense, enabling the transition from analog to digital broadcasting, or helping enterprises manage large data. With offices worldwide, the company is headquartered in Mountain View, Calif., and can be found on the Web at www.sgi.com.

Silicon Graphics, SGI, the SGI cube and the SGI logo are registered trademarks and The Source of Innovation and Discovery is a trademark of Silicon Graphics, Inc., in the United States and/or other countries worldwide. All other trademarks mentioned herein are the property of their respective owners.