BearingPoint Files for Bankruptcy Protection

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 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.

(Reposted from The Ticker)

By Terri Rupar  |  February 18, 2009; 10:18 AM ET  | Category:  Economy Watch
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