Looks like BearingPoint never got that golden ticket it was looking for. Today, the firm filed for Chapter 11, realizing that it couldn?t hold out any more under the weight of its massive, $1 billion debt. Under the new restructuring terms, $700,000 of that debt will be exchanged for preferred and common stock. All existing equity in the company is no longer, ie , shareholders are SOL.
The firm plans to continue on a business-as-usual platform. All business outside the US will be unaffected.
"Our day-to-day operations will continue uninterrupted and we want to assure our employees and customers that we remain committed to serving our clients and to providing world-class consulting solutions," said Ed Harbach, BearingPoint CEO. "This restructuring is an important step to secure a better and stronger future for BearingPoint and we expect to emerge from this process in an expeditious manner." The firm made the filing with a prearranged restructuring plan, hoping to accelerate the process. Luckily, it already has some experience in this area.
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