Silicon Graphics Declares Chapter 11

Silicon Graphics Inc., known for computers that create special effects for Hollywood movies, filed for Chapter 11 bankruptcy protection.

SGI said it expected to exit from Chapter 11 within six months. In its court filing, SGI said its business had been challenged by delays in introducing technology, a focus on more specialized markets and more intense competition.

The Mountain View, Calif.-based company said it reached an accord with lenders on the reorganization plan that would reduce its debt by about $250 million.