Graphics Properties files plan; lenders slated to receive new stock

By Caroline Salls

Pittsburgh, Aug. 18 - Graphics Properties Holdings, Inc., formerly known as Silicon Graphics, Inc., filed its plan of reorganization and related disclosure statement Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

Under the plan, holders of pre-bankruptcy credit agreement secured claims will receive new common stock in the reorganized company.

In addition, a liquidating trust will be established to prosecute avoidance actions and distribute the net proceeds of the causes of action to holders of beneficial interests.

The liquidating trust will also investigate, enforce, abandon, prosecute, resolve and settle disputed priority, priority tax and general unsecured claims and will exist for three years or until all of the trust's property has been distributed.

Treatment of creditors will include:

• Holders of administrative claims will be paid in full by the buyer of the company's assets;

• Holders of secured tax claims will either be paid in full in cash on the plan effective date or over an up to five-year period with interest;

• Holders of other secured claims will either be paid in full in cash or receive the collateral securing their claims;

• Holders of priority tax claims will receive a share of priority tax claim trust interests;

• Holders of priority claims will receive a share of priority claim trust interests;

• Holders of pre-bankruptcy credit agreement secured claims will receive a share of new common stock and secured creditor trust interests; and

• Holders of general unsecured claims will receive a share of general unsecured claim trust interests;

• Holders of old common interests will receive no distribution.

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. Its Chapter 11 case number is 09-11701.

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