posted
Only a few previous topics on this per my search, none of the titles were applicable. Thought it was time to start a new thread.
News out today of emergence from chapter 11. This stock once traded in the $5 range and is still a top company in the field of super-computing. Could bounce big off of this news.
Thoughts?
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SGI Plan of Reorganization Receives U.S. Bankruptcy Court Approval Tuesday September 19, 4:00 pm ET Company on Track to Emerge From Chapter 11 in October 2006
MOUNTAIN VIEW, Calif., Sept. 19 /PRNewswire-FirstCall/ -- SGI (OTC Bulletin Board: SGID - News) today announced that its Plan of Reorganization has received judicial confirmation, setting the stage for the company's emergence from Chapter 11 in October 2006. ADVERTISEMENT
At today's hearing, Judge Burton Lifland ruled that all the necessary requirements have been met for SGI to implement its Plan of Reorganization. Every voting class of creditors voted overwhelmingly in favor of the plan.
"This is a great day for SGI. We have accomplished so much in just five months, reaching our confirmation on the fast track that we expected," said Dennis P. McKenna, CEO and Chairman. "As we emerge, the recapitalization of the company will be complete. We have eliminated the legacy debt, improved our liquidity and stabilized the business. We have also taken out significant costs -- $150 million on an annualized basis. We have re-engineered the company and have a strong leadership team that will be executing this plan. Also of significance to the growth of the company is that during this time, we retooled and aligned our product portfolio to the strategic direction of the company. I want to thank our customers, vendors and employees for supporting the company through this challenging period."
Today SGI also announced it has received commitments for exit financing. The financing facility consists of an $85 million term loan from Morgan Stanley Senior Funding Inc. and a $30 million line of credit from General Electric Capital Corp. that will be used to pay off the existing DIP financing, make distributions pursuant to the plan, and provide working capital for the Company's ongoing operations.
The Plan of Reorganization is available at www.sgi.com/reorg. The documents also will be available via the court's website at www.nysb.uscourts.gov. Please note that a PACER password is required to access the documents via the court's website. SGI's bankruptcy case number is 06- 10977 (BRL).
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 filed on September 19, 2006 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.
SGI | Innovation for Results(TM)
SGI, also known as Silicon Graphics, Inc., is a leader in high-performance computing. SGI helps customers solve their computing challenges, whether it's sharing images to aid in brain surgery, designing and manufacturing safer and more efficient cars and airplanes, 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.
NOTE: Silicon Graphics, SGI, the SGI cube and the SGI logo are registered trademarks and Innovation for Results 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.
Contact: Lisa Pistacchio, +1-650-933-5683, or pistacchio*sgi.com, or SGI PR HOTLINE, +1-650-933-7777, or SGI PR FACSIMILE, +1-650-933-0317, all of SGI.
Posts: 2741 | From: Seattle | Registered: Feb 2005
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posted
Reuters even covered this today, that is pretty big, IMO...
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UPDATE 1-Silicon Graphics says to emerge from Chapter 11 in Oct Tue Sep 19, 2006 4:50pm ET Market View
Sept 19 (Reuters) - Computer maker Silicon Graphics Inc. (SGID.PK: Quote, Profile, Research) (SGI) on Tuesday said it received court approval for its plan of reorganization, paving the way for the company's emergence from Chapter 11 bankruptcy protection in October.
SGI also said it received commitments for exit financing, comprising an $85-million term loan from Morgan Stanley Senior Funding Inc. and a $30-million line of credit from General Electric Capital Corp.
The company plans to use the funds to pay off its existing debtor-in-possession financing, make distributions in line with its reorganization plan and provide working capital for its ongoing operations, SGI said in a statement.
Silicon Graphics, known for computers that create special effects for Hollywood movies, had filed for bankruptcy protection in May.
At a hearing Tuesday, the court ruled that all the necessary requirements have been met for SGI to implement its plan of reorganization, the statement said.
"We have eliminated the legacy debt, improved our liquidity and stabilized the business. We have also taken out significant costs -- $150 million on an annualized basis," Dennis McKenna, chief executive and chairman, said in the statement. (Reporting by Gopakumar Warrier in Bangalore)
Posts: 2741 | From: Seattle | Registered: Feb 2005
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posted
so, the AP is covering this as well. That's huge. This company used to be somewhat of a household name, a la their fame from the use of their products in the making of Jurassic Park. NYSE or Nasdaq listing in the future? CEO thinks so, and they used to be at that level. Looks good to me, I bet some big boys that used to trade this might possibly jump back in because it's so low...
who knows? But I think I might jump in tomorrow...
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AP Silicon Graphics Reorganization OK'd Tuesday September 19, 8:56 pm ET By Michael Liedtke, AP Business Writer Silicon Graphics Bankruptcy Reorganization Wins Court Approval
SAN FRANCISCO (AP) -- Silicon Graphics Inc.'s proposed comeback from bankruptcy won court approval Tuesday, giving the maker of high-powered computers a chance to rekindle the technological wizardry that once made it a Silicon Valley star. ADVERTISEMENT
Now that U.S. Bankruptcy Judge Burton Lifland has signed off on SGI's reorganization plan, the Mountain View-based company is hoping to reverse years of losses by selling more products while also reaping the benefits of dramatically lower expenses.
"The company has been in a defensive position for a long time," SGI Chairman Dennis McKenna said during a Tuesday interview. "Now we are in a position to become an offensive company again."
With its reorganization plan officially approved, SGI expects to formally shed the shackles of bankruptcy next month. The company filed for Chapter 11 protection in May, listing $369 million in assets and $664 million in debt.
The bankruptcy marked a sobering comedown for SGI, which was hailed for the technological elegance of computers that generated then-revolutionary special effects in films such as "Jurassic Park" during the early 1990s.
But buzz surrounding SGI faded as personal computers became more sophisticated and less expensive, reducing the demand for the company's pricier products.
SGI wound up losing nearly $1.7 billion in the 6 1/2 years leading up to its bankruptcy.
Things got so bad that SGI abandoned its sprawling corporate campus in Mountain View a few years ago and turned over the keys to online search engine leader Google Inc.
SGI now occupies smaller offices near its old home, but is considering moving its headquarters to Sunnyvale.
McKenna sees brighter times ahead because the company has trimmed $150 million from its annual expenses and sharpened its focus on the scientific and government customers that account for most of its sales.
The cost-cutting has trimmed SGI's payroll from about 2,200 employees in February to roughly 1,600 workers today.
As part of its recovery, SGI hopes to be listed on the New York Stock Exchange or Nasdaq Stock Market in the near future, McKenna said.
The company's shares were dropped from the NYSE late last year after the stock price fell below $1 for a prolonged stretch. SGI's shares closed at 2 cents Tuesday on the over-the-counter market.
Posts: 2741 | From: Seattle | Registered: Feb 2005
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posted
I can't find what the authorized or outstanding stock is for this one.. Does anyone have the numbers? Thanks in advance~
-------------------- "As long as there are dreamers, there are dreams that will come true." Posts: 862 | From: CT Yankee..... in FLA | Registered: Aug 2005
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posted
Looking good with Morgan Stanley and GE Financing. Min downside. 1.00 to relist. Got to have some. GLTA
Posts: 758 | From: FOREST,MS | Registered: Feb 2005
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posted
They are a supercomputer company because they bought CRAY when they were in their prime 1996. They seemed to have believed they learned everything they needed to know about the supercomputer market when they sold CRAY to Tera Computer Company in 2000
Posts: 491 | From: laurel,md,usa | Registered: Feb 2000
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>>>>> 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.
quote:Originally posted by EverGreen: shares are WORTHLESS !!!
>>>>> 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.
quote:Originally posted by EverGreen: shares are WORTHLESS !!!
>>>>> 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.
nice catch. but if you bought it at .02 and sold at .03 this morning, that's not bad...
Posts: 2741 | From: Seattle | Registered: Feb 2005
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posted
avast! CLYP is dumping shares! oh wait, pirate talk was yesterday...
CLYP's out there dumping nonetheless, but a good play today, I should not have slept in...
Posts: 2741 | From: Seattle | Registered: Feb 2005
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posted
Made good money on these worthless shares today. Looking for more in AM. GLTA
Posts: 758 | From: FOREST,MS | Registered: Feb 2005
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seems like other comps that emerge from BK have a great day after they announce court approval...
please discuss...
wow, almost a double from where I called it at .023...not sure what is going on though if the shares are going to be worthless...possibly shorts covering? but why would they need to cover if the shares are going to be cancelled...?
Posts: 2741 | From: Seattle | Registered: Feb 2005
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posted
yup, lots of boards get concentrated on the same stocks, CSHD, SLJB, etc...meanwhile, plays like these are kicking butt...I feel like I talk to myself a lot as well...check WWCD...
Posts: 2741 | From: Seattle | Registered: Feb 2005
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posted
wow, closed at .046, a 100%+ gain from where alexr and I were banging the table, even funnier, I didn't play it! oh well, something weird is going on for sure...
Posts: 2741 | From: Seattle | Registered: Feb 2005
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posted
Get out at .045, now I got FREE shares. Let's go to the moon !!!!!! The reason I chose this stock because of this web site : ***********.com . Thanks for this web site for making money !!!
Posts: 156 | From: Rochester | Registered: Sep 2006
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posted
Tommorow, I think SGID will go up at AM, but watch out at PM ( could be fall at the EOD ). It is just my optional.
Posts: 156 | From: Rochester | Registered: Sep 2006
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posted
I bailed out to soon. Afraid after wintergreen announced the shares would be worthless. Any one for sure about this. Thanks
Posts: 758 | From: FOREST,MS | Registered: Feb 2005
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it pretty much spells it out in the filing, they are going private in order to emerge from bankruptcy...
doesn't make sense that it is up 100%...but it is...could it be my earlier assumption of shorts covering? But the more that I think about it, if they are cancelling the shares, then everything is cancelled, even the shorts, right?
This is a unique situation, well known company, pink sheet mystery...wish I would have played it better, but a good lesson nonetheless...
Posts: 2741 | From: Seattle | Registered: Feb 2005
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posted
ummm yeah, now at .053 and climbing...will this see a dime? if so, I will kick myself in the head...
Posts: 2741 | From: Seattle | Registered: Feb 2005
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posted
ok, at .06 now, up another 30%...if you bought they day after I posted, it hit .02, that's a 200% gain right now...
Posts: 2741 | From: Seattle | Registered: Feb 2005
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