SEC FORM 3

SEC Form 3

FORM 3

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934
or Section 30(h) of the Investment Company Act of 1940

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1. Name and Address of Reporting Person^*

Quadrangle Debt Recovery Advisors LLC

(Last)

(First)

(Middle)

375 PARK AVENUE

14TH FLOOR

(Street)

NEW YORK

10152

(City)

(State)

(Zip)

2. Date of Event Requiring Statement (Month/Day/Year)
10/17/2006

3. Issuer Name and Ticker or Trading Symbol
SILICON GRAPHICS INC [ SGI ]

4. Relationship of Reporting Person(s) to Issuer
(Check all applicable)

Director	X	10% Owner
Officer (give title below)		Other (specify below)

5. If Amendment, Date of Original Filed (Month/Day/Year)

6. Individual or Joint/Group Filing (Check Applicable Line)

X	Form filed by One Reporting Person
	Form filed by More than One Reporting Person

Table I - Non-Derivative Securities Beneficially Owned
1. Title of Security (Instr. 4)	2. Amount of Securities Beneficially Owned (Instr. 4)	3. Ownership Form: Direct (D) or Indirect (I) (Instr. 5)	4. Nature of Indirect Beneficial Ownership (Instr. 5)
Common Stock	3,097,140	I	See footnote⁽¹⁾

Table II - Derivative Securities Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security (Instr. 4)	2. Date Exercisable and Expiration Date (Month/Day/Year)		3. Title and Amount of Securities Underlying Derivative Security (Instr. 4)		4. Conversion or Exercise Price of Derivative Security	5. Ownership Form: Direct (D) or Indirect (I) (Instr. 5)	6. Nature of Indirect Beneficial Ownership (Instr. 5)
1. Title of Derivative Security (Instr. 4)	Date Exercisable	Expiration Date	Title	Amount or Number of Shares	4. Conversion or Exercise Price of Derivative Security	5. Ownership Form: Direct (D) or Indirect (I) (Instr. 5)	6. Nature of Indirect Beneficial Ownership (Instr. 5)
6.50% Senior Secured Convertible Notes Due 2009⁽²⁾	⁽²⁾⁽³⁾	06/01/2009⁽²⁾	Old Common Stock⁽²⁾⁽³⁾	40,791,200⁽²⁾⁽³⁾	$1.25⁽³⁾	I⁽¹⁾	See footnote⁽¹⁾

Explanation of Responses:

1. All securities disclosed in this Form 3 are owned by certain funds (the "Funds") to which Quadrangle Debt Recovery Advisors LLC acts as investment advisor. By reason of the provisions of Rule 16a-1 under the Securities Exchange Act of 1934, as amended, Quadrangle Debt Recovery Advisors LLC may be deemed to be the beneficial owner of the securities beneficially owned by the Funds. Quadrangle Debt Recovery Advisors LLC disclaims beneficial ownership of all such securities, except to the extent of any indirect pecuniary interest therein.

2. As a result of the reorganization of the Issuer under chapter 11 of the federal bankruptcy code, which reorganization was effective as of October 17, 2006 (the "Effective Date"), the common stock, par value $0.001 per share (the "Old Common Stock"), of the Issuer and the 6.50% Senior Secured Convertible Notes Due 2009 (the "Convertible Notes") were cancelled and ceased to be outstanding, and Quadrangle Debt Recovery Advisors LLC therefore ceased to beneficially own Old Common Stock as of the Effective Date. Prior to the Effective Date, Quadrangle Debt Recovery Advisors LLC had become the indirect beneficial owner of greater than 10% of the total outstanding shares of Old Common Stock.

3. The Convertible Notes were convertible into shares of Old Common Stock of the Company at any time at the option of the holder, at a conversion price equal to $1.25 per share, subject to adjustment in certain events. As indicated above, the Old Common Stock and the Convertible Notes were cancelled and ceased to exist on the Effective Date.

	Quadrangle Debt Recovery Advisors LLC, By: /s/ Michael Weinstock, Managing Member	10/27/2006
	** Signature of Reporting Person	Date
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 5 (b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
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