FORM 4 Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940

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(Print or Type Responses)

1. Name and Address of Reporting Person * Yi Chun Won   2. Issuer Name and Ticker or Trading Symbol SILICON GRAPHICS INC [SGIC] 5. Relationship of Reporting Person(s) to Issuer (Check all applicable) __X__ Director _____ 10% Owner _____ Officer (give title below) _____ Other (specify below) (Last) (First) (Middle) C/O MONARCH ALTERNATIVE CAPITAL GROUP LP, 535 MADISON AVENUE 3. Date of Earliest Transaction (Month/Day/Year) 08/27/2008 (Street) NEW YORK, NY 10022 4. If Amendment, Date 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 (City) (State) (Zip) Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned

1.Title of Security (Instr. 3) 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code (Instr. 8) 4. Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5) 5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4) 6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4) Code V Amount (A) or (D) Price Common Stock (Restricted Stock Units) 08/27/2008   D(1)   1,429 (1) D $ 0 0 D

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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)

1. Title of Derivative Security (Instr. 3)

2. Conversion or Exercise Price of Derivative Security

3. Transaction Date (Month/Day/Year)

3A. Deemed Execution Date, if any (Month/Day/Year)

4. Transaction Code (Instr. 8)

5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4, and 5)

6. Date Exercisable and Expiration Date (Month/Day/Year)

7. Title and Amount of Underlying Securities (Instr. 3 and 4)

8. Price of Derivative Security (Instr. 5)

9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)

10. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 4)

11. Nature of Indirect Beneficial Ownership (Instr. 4)

Code

V

(A)

(D)

Date Exercisable

Expiration Date

Title

Amount or Number of Shares

Stock Option (right to buy)

$ 18.03

08/27/2008

S

12,500

12/01/2007

11/30/2011

Common Stock

12,500

(2)

12,500

D

Stock Option (right to buy)

$ 17.99

08/27/2008

D(3)

3,571

12/06/2008

12/05/2012

Common Stock

3,571

(3)

3,571

D

Reporting Owners

Reporting Owner Name / Address	Relationships
	Director	10% Owner	Officer	Other
Yi Chun Won C/O MONARCH ALTERNATIVE CAPITAL GROUP LP 535 MADISON AVENUE NEW YORK, NY 10022	X

Signatures

/s/ Chun Won Yi		08/29/2008
**Signature of Reporting Person		Date

Explanation of Responses:

*	If the form is filed by more than one reporting person, see Instruction 4(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).
(1)	These restricted stock units were granted to Chun Won Yi, an employee of MAC, on December 6, 2007 as compensation for his service on the board of directors (the "Board") of the issuer. The units will not vest, as a result of Mr. Yi's resignation from the Board prior to the first anniversary of the date of grant.
(2)	These stock options were granted to Mr. Yi on December 1, 2006 as compensation for his service on the Board. The options vested on December 1, 2007. Mr. Yi ceased to be a director of the issuer on August 26, 2008, and the options were subsequently transferred to funds advised by Monarch Alternative Capital LP.
(3)	These stock options were granted to Mr. Yi on December 6, 2007 as compensation for his service on the Board. As a result of Mr. Yi's resignation from the Board prior to the first anniversary of the date of grant, such options will not vest.

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