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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 CRbg0h+k2FM+/Rv/Kbxe8BWYWz5Fhrl0dLZaUfmEquCDqtDKwFF3+6gjym73hZB5
 LdgscdSGPNE7GR7kG1x0tw==

<SEC-DOCUMENT>0000899140-06-001468.txt : 20061027
<SEC-HEADER>0000899140-06-001468.hdr.sgml : 20061027
<ACCEPTANCE-DATETIME>20061027193828
ACCESSION NUMBER:		0000899140-06-001468
CONFORMED SUBMISSION TYPE:	3
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20061017
FILED AS OF DATE:		20061027
DATE AS OF CHANGE:		20061027

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			Herenstein Andrew
		CENTRAL INDEX KEY:			0001378211

	FILING VALUES:
		FORM TYPE:		3
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-10441
		FILM NUMBER:		061170155

	BUSINESS ADDRESS:	
		BUSINESS PHONE:		212-418-1700

	MAIL ADDRESS:	
		STREET 1:		C/O QUADRANGLE GROUP LLC
		STREET 2:		375 PARK AVENUE, 14TH FLOOR
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10152

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SILICON GRAPHICS INC
		CENTRAL INDEX KEY:			0000802301
		STANDARD INDUSTRIAL CLASSIFICATION:	ELECTRONIC COMPUTERS [3571]
		IRS NUMBER:				942789662
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0630

	BUSINESS ADDRESS:	
		STREET 1:		1500 CRITTENDEN LANE
		CITY:			MOUNTAIN VIEW
		STATE:			CA
		ZIP:			94043
		BUSINESS PHONE:		6509601980

	MAIL ADDRESS:	
		STREET 1:		1500 CRITTENDEN LANE
		STREET 2:		-
		CITY:			MOUNTAIN VIEW
		STATE:			CA
		ZIP:			94043

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	SILICON GRAPHICS INC /CA/
		DATE OF NAME CHANGE:	19920703
</SEC-HEADER>
<DOCUMENT>
<TYPE>3
<SEQUENCE>1
<FILENAME>herenstein_silicon3-102706ex.xml
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>3</documentType>

    <periodOfReport>2006-10-17</periodOfReport>

    <noSecuritiesOwned>0</noSecuritiesOwned>

    <issuer>
        <issuerCik>0000802301</issuerCik>
        <issuerName>SILICON GRAPHICS INC</issuerName>
        <issuerTradingSymbol>SGI</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001378211</rptOwnerCik>
            <rptOwnerName>Herenstein Andrew</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>C/O QUADRANGLE GROUP LLC</rptOwnerStreet1>
            <rptOwnerStreet2>375 PARK AVENUE, 14TH FLOOR</rptOwnerStreet2>
            <rptOwnerCity>NEW YORK</rptOwnerCity>
            <rptOwnerState>NY</rptOwnerState>
            <rptOwnerZipCode>10152</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeHolding>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>3097140</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>See footnote</value>
                    <footnoteId id="F1"/>
                </natureOfOwnership>
            </ownershipNature>
        </nonDerivativeHolding>
    </nonDerivativeTable>

    <derivativeTable>
        <derivativeHolding>
            <securityTitle>
                <value>6.50% Senior Secured Convertible Notes Due 2009</value>
                <footnoteId id="F2"/>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>1.25</value>
                <footnoteId id="F3"/>
            </conversionOrExercisePrice>
            <exerciseDate>
                <footnoteId id="F2"/>
                <footnoteId id="F3"/>
            </exerciseDate>
            <expirationDate>
                <value>2009-06-01</value>
                <footnoteId id="F2"/>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Old Common Stock</value>
                    <footnoteId id="F2"/>
                    <footnoteId id="F3"/>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>40791200</value>
                    <footnoteId id="F2"/>
                    <footnoteId id="F3"/>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                    <footnoteId id="F1"/>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>See footnote</value>
                    <footnoteId id="F1"/>
                </natureOfOwnership>
            </ownershipNature>
        </derivativeHolding>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">All securities disclosed in this Form 3 are owned by certain funds (the &quot;Funds&quot;) to which Quadrangle Debt Recovery Advisors
 LLC acts as investment advisor.  Andrew Herenstein (&quot;Mr. Herenstein&quot;) is a  managing member of Quadrangle Debt Recovery
 Advisors LLC.  By reason of the provisions of Rule 16a-1 under the Securities Exchange Act of 1934, as amended, Quadrangle
 Debt Recovery Advisors LLC and Mr. Herenstein may be deemed to be the beneficial owners of the securities beneficially owned
 by the Funds.  Quadrangle Debt Recovery Advisors LLC and Mr. Herenstein each disclaim beneficial ownership of all such
 securities, except to the extent of any indirect pecuniary interest therein.</footnote>
        <footnote id="F2">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 &quot;Effective Date&quot;), the common stock, par value $0.001 per share (the &quot;Old Common
 Stock&quot;), of the Issuer and the 6.50% Senior Secured Convertible Notes Due 2009 (the &quot;Convertible Notes&quot;) were cancelled and
 ceased to be outstanding, and Mr. Herenstein therefore ceased to beneficially own Old Common Stock as of the Effective Date.
  Prior to the Effective Date, Mr. Herenstein had become the indirect beneficial owner of greater than 10% of the total
 outstanding shares of Old Common Stock.</footnote>
        <footnote id="F3">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.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>Andrew Herenstein, By: /s/ Robert Burns, Attorney-in-Fact</signatureName>
        <signatureDate>2006-10-27</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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