Silicon Graphics has surely had a problematic decade, as its latest filing for Chapter 11 bankruptcy protection is not the first in the company’s history. Bear in mind that this is not bankruptcy in the common sense of the word, as Chapter 11 allows for a chance to reorganize under certain laws, and you can learn more about it here. As a result, the company yesterday announced that it will be acquired by Rackable Systems.
Rackable Systems, Inc. has agreed on acquiring substantially all the SG’s assets for “approximately $25 million in cash” as well as assume “certain liabilities associated with the required assets.” Silicon Graphics listed $390.5 million worth of assets opposed to a debt of $526.5 million. The company’s largest creditors were listed as Voltaire Inc, Intel Americas and Qimonda.
Some might remember the first episode of this nasty ordeal in 2006, when the company also filed for Chapter 11 coupled with being delisted from NASDAQ, which on the bright side at least means they’ll know how to deal with it better this time. (The fact that they landed themselves in the same mess all over again suggests otherwise. sub.ed.)