Silicon Graphics' plan accepted by a majority of voting creditors

By Caroline Salls

Pittsburgh, Sept. 12 - Silicon Graphics, Inc.'s plan of reorganization was accepted by a large majority of voting creditors, according to a Tuesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

According to the filing, holders of $149.62 million, or 99.98% of the total amount of secured note claims, voted to accept the plan, while holders of $33,639, or 0.02%, of those claims voted to reject it. In number, 231, or 99.57% of secured note claimants accepted the plan, while one claimant, representing 0.43% of claimants, rejected it.

Also, holders of $4.51 million, or 98.95% of the total amount of general unsecured claims voted to accept the plan, while holders of $47,796, or 1.05%, of those claims voted to reject it. In number, 111, or 97.37% of general unsecured claimants accepted the plan, while three claimants, representing 2.63% of claimants, rejected it.

Finally, holders of $9.5 million, or 96.87% of the total amount of Cray unsecured debenture claims voted to accept the plan, while holders of $306,984, or 3.13%, of those claims voted to reject it. In number, 165, or 91.67% of Cray unsecured debenture claimants accepted the plan, while 15 claimants, representing 8.33% of claimants, rejected it.

The plan confirmation hearing will be held on Sept. 19.

As previously reported, treatment of creditors under the plan will include:

• Holders of the company's 6½% secured notes and 11¾% secured notes will receive their share of 2.5 million shares of new common stock in the reorganized company as well as 6.8 million rights to purchase one share of additional stock. This will represent 100% of the new common stock in the reorganized company.

The noteholders will also receive 100% of the beneficial interests of a trust funded by price-fixing litigation proceeds and $250,000 in cash contributed by the company;

• Holders of general unsecured claims will receive their share of $9 million;

• Holders of Cray unsecured debentures will receive 700,000 rights for new common stock and their share of $1.2 million. Conway will have the right to purchase the rights not purchased by Cray debenture holders; and

• Holders of old Silicon Graphics equity interests will receive no distribution.

Post-bankruptcy financing claims, priority tax claims, secured tax claims and other priority claims will be paid in full.

Silicon Graphics, a Mountain View, Calif., technology provider, filed for bankruptcy on May 29. The company's Chapter 11 case number is 06-10977.

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