BearingPoint Files for Bankruptcy

Just hours ago, BearingPoint filed for chapter 11 bankruptcy protection...

According to the filing, international operations have not been included. As part of filing, a $500 million senior secured credit facility will be replaced with a new secured, senior credit facility. New preferred stock will be issued, unsecured debt will be exchanged for different classes of common stock and all existing shares will be canceled. This essentially helps to reduce its debt load owed to major lenders, and gives the company a chance to emerge smaller/leaner, yet alive!! ...while unfortunately wiping out its former shareholders!

In the U.S., both BearingPoint's SAP practice and its public sector business were still performing well until mid-year 2008, clients include 15 U.S. federal cabinet level-departments, 23 U.S. states.

While poaching has been ongoing, bankruptcy may now open up more of the firm's SAP resources to the market...