BearingPoint files plan of liquidation to distribute sale proceeds

By Caroline Salls

Pittsburgh, Oct. 9 - BearingPoint, Inc. has filed a plan of liquidation and related disclosure statement with the U.S. Bankruptcy Court for the Southern District of New York, according to an 8-K filed Friday with the Securities and Exchange Commission.

As previously reported, the company originally filed a pre-packaged plan of reorganization that called for a restructuring of the company and had the support of BearingPoint's secured lenders.

However, BearingPoint subsequently decided that creditor recoveries would be maximized by the sale of its businesses and assets.

Under the liquidation plan, all of the company's remaining assets will be transferred to a liquidating trust, which will make distributions to creditors.

All existing equity will be cancelled and holders will receive no distribution under the amended plan.

Treatment of creditors under the liquidation plan will include:

• Holders of administrative claims, professional compensation and reimbursement claims, priority tax claims and priority non-tax claims will be paid in full in cash;

• Holders of other secured claims will either be paid in full in cash, receive the proceeds from the sale of the collateral securing the claim or receive the collateral;

• Holders of series C noteholder claims will receive a class C beneficial interest in the liquidating trust, which will entitle them to distributions from the liquidating trust;

• Holders of junior noteholder claims will receive class A/B interests in the liquidating trust, provided, however, that all distributions on account of class A/B beneficial interests will be made directly to holders of senior noteholder claims until they are paid in full;

• Holders of general unsecured claims will receive class G interests in the liquidating trust; and

• Holders of other subordinated claims and equity interests will receive no distribution.

BearingPoint, a McLean, Va.-based provider of management and technology consulting services, filed for bankruptcy on Feb. 18, 2009. Its Chapter 11 case number is 09-10691.

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