A visitor tangled up in the recent SGI sale to Rackable and currently wondering what is going to happen to their paycheck and health coverage, has sent me a link to the bankruptcy consultancy Donlin Recano, which seems to be managing the SGI deal. At the link below you can read all the various information about the SGI bankruptcy deal. Of particular note if you view the “First Day Pleadings and Court Docket”, there is a MASSIVE amount of information for you to peruse. One thing pointed out to me by the tipster is “Document #14“, Section 6: Exhibit E – Asset Purchase Agreement, which has some juicy details toward the end under “Executive Retention Arrangements”.
- Mr. Ewald will remain until December 31, 2009 (“The Transition Period”), making at least 90% of his current salary. After that, he gets a $600,000 lump sum payment (unless he’s terminated for cause or resigns) to go away.
- Certain “Retained Executives” will also stick around, making 90% of their current salary, to be decided by the “Sale Order Date”. After that they will receive a severance package containing a lump sum payment equal to 6 months of his current salary plus 6 months of health coverage.
- The other executives will be terminated with a severance package of 2 months of their current salary plus vacation.
It’s a huge amount of legal mumbo-jumbo that I am incapable and unqualified to decipher, so I put it to the readers: What do you make of all of it? Find any other juicy tidbits? Some questions that are already on my mind (and the original tipster’s):
- What/Who is the mentioned “Sapphire” and “Ruby”?
- Why so many signoff’s from Cray Research? Because they’re a major debtor?
- What is the “Sale Order Data”?
Also, like the disclaimer on the website says: These documents are in-flux and the details are still being hammered out. Although, they do have the signatures of all the higher-ups at SGI & Rackable on them, so I can’t see them changing too much from what you see here.
I’m slowly digging through the documents, and putting all my findings in This Article several articles under the SGI tag..
