BearingPoint reports emergance from Chapter 11 bankruptcy on Dec. 30

By Lisa Kerner

Charlotte, N.C., Dec. 31 - BearingPoint Inc. emerged from Chapter 11 bankruptcy when its plan of reorganization took effect on Wednesday, according to a form 8-K filed with the Securities and Exchange Commission.

The plan was confirmed on Dec. 17 by the U.S. Bankruptcy Court for the Southern District of New York.

On the effective date, F. Edwin Harbach, Roderick C. McGeary, Frederic F. Brace and Eddie R. Munson resigned as directors of the company, and John DeGroote was elected as the director of Bearing Point, the filing said.

Also on Dec. 30, the company filed a third amended and restated certificate of incorporation.

A prior court filing said BearingPoint's plan of reorganization was accepted by a majority of creditors in three of four voting classes.

As previously reported, 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 canceled, and holders will receive no distribution under the amended plan.

Creditor treatment

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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.