maintained by John DeGroote Services, LLC, Trustee

 

Case Update – December 22, 2012

December 22nd, 2012 - Case Updates

On November 15, 2012, Defendants F. Edwin Harbach, Roderick McGeary, and Eddie R. Munson (the “Former Directors”) filed a separate Complaint (the “New Virginia Complaint”) against John DeGroote in his individual capacity in the Circuit Court of Fairfax County, Virginia.  The New Virginia Complaint filed against DeGroote, who serves as Liquidating Trustee of the BearingPoint, Inc. Liquidating Trust through John DeGroote Services, LLC, alleges that DeGroote served as personal counsel to Harbach, McGeary and Munson while DeGroote served as the Chief Legal Officer of BearingPoint, Inc. in late 2009, and that his actions have damaged the Former Directors as claimed in the New Virginia Complaint.  Subsequently, on November 28, 2012, the Former Directors filed Defendants’ Motion to Consolidate and Defendants’ Supporting Memorandum in Support of Motion to Consolidate in the current case seeking to consolidate the New Virginia Complaint with the Trustee’s complaint against BearingPoint, Inc.’s former Chief Executive Officer and the Director Defendants.

In response to the New Virginia Complaint against him individually, DeGroote filed a Motion for an Order (A) Enforcing Confirmation Order, (B) Holding F. Edwin Harbach, Roderick C. McGeary, and Eddie R. Munson in Contempt, and (C) Imposing Sanctions for Willful Violation of Confirmation Injunction with the United States Bankruptcy Court for the Southern District of New York.  A hearing on that motion is set for January 28, 2013.   Mr. DeGroote also filed a Notice of Removal from the Circuit Court for Fairfax County removing the New Virginia Complaint from State Court to the Alexandria Division of the United States District Court for the Eastern District of Virginia, and a Suggestion of Lack of Jurisdiction, etc., on December 13, 2012, noting the removal of the case, but including a Motion Craving Oyer in the event the New Virginia Complaint is ultimately remanded back to State Court.  In addition, on December 21, 2012, John DeGroote Services, LLC, as Liquidating Trustee to the BearingPoint, Inc. Liquidating Trust, filed BearingPoint, Inc. Liquidating Trustee’s Motion and Joinder to Motion to Enforce the Plan Injunction.

Update:On January 14, 2013, F. Edwin Harbach, Roderick C. McGeary, and Eddie R. Munson filed a Joint Opposition to the Motion of John DeGroote for an Order Enforcing the Confirmation Order, along with a Declaration incorporating several Exhibits for that Joint Opposition.