BearingPoint, Inc. Unsecured Creditor Pool Reduced to $793 Million

Additional Distribution Planned for Year End

DALLAS--()--John DeGroote Services, LLC, Liquidating Trustee to the BearingPoint, Inc. Liquidating Trust (the “Trust”), announced today that a significant reduction of the Disputed General Unsecured Claims Reserve has been achieved, resulting in a total remaining unsecured claims pool of less than $793 million.

“We have pursued a number of objections and entered into various settlement agreements that have resulted in a significant reduction to our Disputed General Unsecured Claims Reserve”

“We have pursued a number of objections and entered into various settlement agreements that have resulted in a significant reduction to our Disputed General Unsecured Claims Reserve,” said John DeGroote, President of John DeGroote Services, LLC. “Recovery to creditors is the primary mission of the Trust, and I am proud of the team that has made this happen.”

Since filing for chapter 11 protection in 2009, BearingPoint, Inc. and its debtor affiliates (“BearingPoint”) and the Trust have returned over $440 million to BearingPoint’s creditors, including payment in full to their secured lenders, full satisfaction of BearingPoint, Inc.’s Paid Time Off obligations to former employees, approximately $4 million to additional administrative creditors, and $18 million to unsecured creditors.

“Our unsecured claims reserve has been reduced by approximately $2.26 billion, or 74%, since our plan went effective,” said AlixPartners Managing Director Barry Folse, who leads the resolution of claims and preference actions for the Trust.

The Trust currently anticipates and intends to make at least one more distribution to unsecured creditors by the end of 2010. “The amount and timing of this distribution will primarily hinge on the timing of litigation settlements and recoveries over the next several weeks,” said David Johnston, the lead financial advisor to the Trust and former CFO of BearingPoint.

Contacts

John DeGroote Services, LLC
John DeGroote, 214-459-2767

Website

Release Summary

BearingPoint, Inc. Unsecured Creditor Pool Reduced to $793 Million

John DeGroote Services, LLC