McLean consulting giant BearingPoint, struggling under a heavy debt load, filed yesterday for bankruptcy protection.
The Chapter 11 filing came as a debt deadline approached. On April 15, some of BearingPoint's lenders would have had the option of requiring the company to pay off $200 million in loans, plus interest. The company also faced the prospect of repaying all of its loans if its stock was delisted from the New York Stock Exchange, BearingPoint said in a news release yesterday. The exchange has halted trading of the company's stock, which is now listed for pennies on an over-the-counter exchange.
"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," Ed Harbach, BearingPoint chief executive, said in the statement. "This restructuring is an important step to secure a better and stronger future."