BearingPoint Files for Chapter 11 Bankruptcy
McLean-based consultancy BearingPoint filed for bankruptcy protection under Chapter 11, the company announced today, saying it plans to continue business uninterrupted while reorganizing, The Post's Alejandro Lazo reports.
"The filing was made with a 'pre-arranged' restructuring plan with the support of the Company's senior secured lenders. As a result, the Company expects that it will complete its restructuring process on an accelerated basis," the company said in a release.
The plan provides that a 2007 $500 million senior secured credit facility will be replaced with a new secured, senior credit facility under the following conditions:
- A term loan in the amount of $272 million plus accrued interest and a synthetic letter of credit facility in the amount of up to $130 million.
-- The issuance of new preferred stock.
-- The unsecured debt will be exchanged for different classes of common stock.
-- All existing equity in the company will be canceled for no consideration.
The Post's Mike Rosenwald wrote about the company's troubles in January. You can read his story here.
February 18, 2009; 10:06 AM ET
Categories: The Ticker | Tags: BearingPoint, bankruptcy
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