BearingPoint, Inc. Unsecured Creditors to Receive Third Distribution

$5 Million Distribution Results from Litigation Recoveries, Asset Sales

DALLAS--()--John DeGroote Services, LLC, as Liquidating Trustee to the BearingPoint, Inc. Liquidating Trust (“the Trust”), announced today that the Trust will make a distribution to unsecured creditors of BearingPoint, Inc. and its affiliated debtors in the amount of $5 million. This will be the Trust’s third distribution. Checks will be mailed today to holders of Allowed General Unsecured Claims.

“Subsequent distributions will primarily hinge on recoveries from litigation, remaining preference claims, and the repatriation of international funds”

“Today’s distribution was driven by litigation recoveries and asset sales,” said John DeGroote, President of John DeGroote Services, LLC. These actions have included:

  • A $5 million settlement with American Express Travel Related Services, Inc. for preference and related claims;
  • A $5 million dollar settlement with the United States Department of the Interior;
  • The sale of BearingPoint trademarks and related intellectual property assets held by the Trust’s Barbadian subsidiary; and
  • Various tax recoveries at the federal and state levels.

“Subsequent distributions will primarily hinge on recoveries from litigation, remaining preference claims, and the repatriation of international funds,” noted former BearingPoint Chief Financial Officer and current Restructuring Advisor David Johnston of AlixPartners.

With today’s distribution, the Trust has returned over $448 million to BearingPoint’s creditors, including payment in full to secured lenders, full satisfaction of BearingPoint, Inc.’s Paid Time Off obligations to former employees, payment of over $4 million to additional administrative and priority creditors, and $26 million to unsecured creditors. The Unsecured Creditor Pool now stands at less than $782 million.

“This distribution is the result of the commitment and dedication of the Trust’s professionals and contractors. As we move to the next phase of our wind-down, we are well positioned to pursue remaining litigation claims and finalize the sale or disposition of additional assets over the long term as necessary,” DeGroote said.

Contacts

John DeGroote Services, LLC
John DeGroote, 214-459-2770