Following six years of consecutive losses, bankrupt BearingPoint Inc. continues to shed assets. On Wednesday, the bankruptcy court approved the $25 million sale of certain commercial service group assets to PricewaterhouseCoopers. The deal will result in PwC owning a significant portion of the IT consultancy's North American commercial business and global delivery centers. PwC already received approval to acquire BearingPoint's Japanese business for about $45 million.
Deloitte LLP is also coming away with a piece of BearingPoint, picking up the bankrupt firm's public services unit, its largest, for $350 million on March 24.
The sales are the culmination of months of negotiating between BearingPoint, its creditors and the New York Stock Exchange that the company had hoped would help it avoid Chapter 11. As this Deal Pipeline
timeline shows, the firm first began exploring its strategic alternatives in August 2008, when it hired Greenhill & Co. to help it reduce its outstanding debt. By October, it was considering a reverse stock split to maintain its NYSE listing. It expanded its strategic review and hired a new CFO in November. But the efforts weren't enough to avoid a filing. It
filed for bankruptcy in February after reaching a debt restructuring agreement with senior secured lenders, and by March it was negotiating asset sales with rivals.
Despite its major downsizing, BearingPoint is still churning out product. The company sent out a release on Tuesday touting three
new podcast available on its Web site. The topic: post-merger integration.
- Suzanne Stevens
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