Silicon Graphics, which filed for Chapter 11 bankruptcy protection last month, has put forward a restructuring plan.

The court overseeing the reorganisation filing has approved the terms of a settlement with Goldman Sachs, according to a report on Reuters.

The agreement will lower Silicon Graphics' yearly cash obligations by $15m to $20m and give the company further liquidity of almost $19m.

Silicon Graphics is best known for its high-powered computers used in creating special effects for film companies, but the company has failed to keep up with increasingly tough competition from bigger rivals.