Silicon Graphics granted interim approval of stock trading procedures

By Caroline Salls

Pittsburgh, April 7 - Silicon Graphics, Inc. received interim court approval to establish notification and hearing procedures for trading in equity securities, according to an 8-K filed with the Securities and Exchange Commission.

The final hearing is scheduled for April 24.

Under the procedures, any person or entity that owns 553,000 or more shares of the company's common stock will be classified as a substantial shareholder and must file advance written notice with the court and the company before increasing or decreasing the amount of stock owned.

Upon receipt of this notice, Silicon Graphics will have 30 calendar days to file an objection to the transfer of shares.

If an objection is filed, the transfer will not be effective unless approved by a final and non-appealable court order.

According to the 8-K, the company can only file an objection on the grounds that the transfer will adversely affect its ability to preserve net operating losses or other tax attributes.

Silicon Graphics, a Sunnyvale, Calif.-based provider of products and services for use in high-performance computing and data management, filed for bankruptcy on April 1 in the U.S. Bankruptcy Court for the Southern District of New York. Its Chapter 11 case number is 09-11701.

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