BearingPoint

February 18, 2009 (Summary)

BearingPoint Inc BGPT.OB, which provides technology and management consulting services to the U.S. government, filed for Chapter 11 bankruptcy on Wednesday, Feb. 18, and said it reached an agreement with senior secured lenders to cut its debt load.

According to Reuters, as part of the prearranged plan, a $500 million senior secured credit facility will be replaced with a new secured, senior credit facility. New preferred stock will be issued, unsecured debt will be exchanged for different classes of common stock and all existing shares will be canceled.

BearingPoint requested permission to use secured lenders’ cash collateral to backstop as much as $20 million in letters of credit to fund operations. The company projects that on emergence from bankruptcy, it will have cash of $184.6 million.

As of September, assets were about $1.76 billion and liabilities were about $2.23 billion, according to court documents.

Sources and Related Articles

• BearingPoint to Pay $23.8 Million to 300 Managing Directors
• BearingPoint files for bankruptcy protection

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