Bankruptcy News

U.S. Bankruptcy Court Approves SGI's Disclosure Statement For Voting Purposes

MOUNTAIN VIEW, Calif.— Silicon Graphics (OTC: SGID) announced today that its Disclosure Statement has been approved by the U.S. Bankruptcy Court for the Southern District of New York thereby enabling the Company to continue on its path toward emerging from chapter 11 by the end of September.

At a hearing in New York, the Honorable Burton R. Lifland ruled that SGI's Disclosure Statement contained adequate information for the purpose of soliciting creditor approval of SGI's Plan of Reorganization. The Plan is supported by the Official Creditors' Committee, the Ad Hoc Committee of Senior Secured Noteholders and the largest holder of Silicon Graphics' Unsecured Debentures. SGI will commence mailing of the Plan and Disclosure Statement by August 3, 2006.

A hearing for the court to consider confirmation of the Plan has been scheduled for September 19, 2006. Certain other motions related to employees and financing were also approved.

Contact South Dakota lawyers today and get a free consultation!

	Did You Know?
	Chapter 13 bankruptcy law is frequently referred to as a “wage earner” chapter Although it is available to individuals with regular income from any source, not just wages. Once the court confirms the plan, it is the responsibility of the debtor to make the plan succeed. The debtor must make regular payments to the trustee, which will require adjustment to living on a fixed budget for a prolonged period.