SGI to emerge from bankruptcy cocoon in September
Servers made with less debt
SGI hopes to emerge as a leaner, meaner organisation by the end of the third quarter.
The hardware maker this week filed an amended reorganisation plan that calls for it to finish off bankruptcy proceedings by September. If all goes as expected, SGI will trim its total debt down to $70m from $345m. Some of the debt will be removed in exchange for the privilege of investing more money in SGI 2.0.
"We are pleased with the progress the company is making and the likelihood of an exit by the end of September," SGI CEO Dennis McKenna said. "With the financial re-engineering process nearing completion, the company is working in parallel on its operational initiatives to improve performance. We look forward to focusing 100 per cent of our efforts on executing our new strategies."
SGI's plans must be approved by a bankruptcy court.
Central to SGI's emergence will be a more diverse product line. At the end of last month, SGI announced Xeon-based servers that will complement its struggling Itanium-based product line. CEO McKenna laid out more of SGI's product plans here. ®