maintained by John DeGroote Services, LLC, Trustee

 

News Updates

BearingPoint, Inc. Liquidating Trust Announces Special Litigation Distribution

July 18th, 2013 - Litigation, News Updates

DALLAS–(BUSINESS WIRE)–John DeGroote Services, LLC, as Liquidating Trustee to the BearingPoint, Inc. Liquidating Trust, announced today a $28 million special litigation distribution to creditors. This supplemental distribution will be made immediately and results from the Trust’s lawsuit against former Directors and the former Chief Executive Officer of BearingPoint, Inc., which was settled for $55 million with no admission of liability.

“This distribution caps a three-year effort by our team. We’re happy to get this money into the hands of our creditors, where it belongs,” said John DeGroote, President of John DeGroote Services, LLC.

With this distribution, the Trust has returned over $476 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 $54 million to unsecured creditors. The Unsecured Creditor Pool now stands at approximately $781 million.

“At this point the primary assets of the Trust have been liquidated, and our remaining focus is to extinguish the final obligations of the Trust,” DeGroote said. “We do not anticipate a final distribution for at least another year, and the amount of that distribution, if any, will hinge on the cost of those efforts and the net amounts realized from our remaining assets,” he added.

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BearingPoint, Inc. Director and Officer Litigation Settlement Announced

March 21st, 2013 - Litigation, News Updates

DALLAS, Mar 21, 2013 (BUSINESS WIRE) — John DeGroote Services, LLC, as Liquidating Trustee to the BearingPoint, Inc. Liquidating Trust, announced today that the Trust settled its lawsuit against former Directors and the former Chief Executive Officer of BearingPoint, Inc.  Under the settlement the Trust will receive $55 million, with no admission of liability and a release of claims by all parties.

“This settlement will generate a significant additional recovery for BearingPoint’s creditors, and it culminates a multi-year effort to bring this litigation to resolution,” said John DeGroote, President of John DeGroote Services, LLC.  “If all goes as planned we’ll be in a position to distribute the proceeds from this settlement, net of litigation expenses and other costs, by midsummer.”

Three former directors of BearingPoint have agreed to dismiss a lawsuit they recently filed in Virginia against DeGroote. DeGroote has agreed to dismiss his request to the New York Bankruptcy Court to hold the three former directors in contempt and impose sanctions for violating a court order by filing the lawsuit against him in Virginia.

The Trust was represented in the Director and Officer action by Whiteford, Taylor & Preston L.L.P., led by Kevin Hroblak and William Ryan, and McKool Smith, P.C., led by Robert Manley and Lewis LeClair, and Christopher Nolland, who served as Special Settlement Counsel to the Trust.

The settlement agreement has been submitted for approval to the Honorable Robert E. Gerber of the United States Bankruptcy Court for the Southern District of New York.

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BearingPoint Trustee Wants Ex-Directors Held In Contempt

December 22nd, 2012 - Litigation, News Updates

Law360, Los Angeles (December 14, 2012, 4:23 PM ET) — The liquidating trustee for technology consulting firm BearingPoint Inc. on Thursday asked a New York bankruptcy judge to hold the firm’s former executives in contempt and impose sanctions for allegedly violating a court order by filing a malpractice and fraud lawsuit against him in Virginia court.

John DeGroote also asked U.S. Bankruptcy Judge Robert E. Gerber to order former BearingPoint CEO F. Edward Harbach and former directors Roderick C. McGeary and Eddie R. Munson to voluntarily dismiss the Virginia lawsuit they filed in November because it……

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Suit Against Former BearingPoint CEO, Board Advances

June 1st, 2012 - Litigation, News Updates

A Virginia judge said the court-appointed official in charge of winding down BearingPoint Inc.’s business can move forward with a lawsuit against the consulting firm’s officers and directors, including former Chief Executive F. Edwin Harbach.

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Court Orders That Lawsuit Against BearingPoint’s Former CEO and Directors Will Proceed – Jury Trial Set for April 1, 2013

May 31st, 2012 - Litigation, News Updates

Dallas, Business Wire (May 30, 2012, 06:24 PM EST) – John DeGroote Services, LLC, as Liquidating Trustee to the BearingPoint, Inc. Liquidating Trust (“the BearingPoint Trustee”), announced today that the Circuit Court for Fairfax County, Virginia ordered that a lawsuit against BearingPoint, Inc.’s former Chief Executive Officer and a number of its former directors will proceed, denying the Defendants’ attempts to dismiss the 88-page Complaint.

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BearingPoint, Inc. Unsecured Creditors to Receive Third Distribution

August 25th, 2011 - BE Estate, News Updates

$5 Million Distribution Results from Litigation Recoveries, Asset Sales

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BearingPoint Trustee Allowed To Move $1.9B Suit To Va.

July 23rd, 2011 - Litigation, News Updates

Law360, New York (July 12, 2011, 10:23 PM ET) — The New York bankruptcy judge overseeing the Chapter 11 proceedings for BearingPoint Inc. said on Monday that the technology consulting firm’s liquidating trustee can bring a $1.9 billion suit against BearingPoint’s former CEO and eight directors in Virginia state court.

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Ex-BearingPoint Directors to Face Lawsuit Over Bankruptcy in State Court

July 12th, 2011 - Litigation, News Updates

Former BearingPoint Inc. directors will face a $1.88 billion lawsuit over their role in the consulting company’s insolvency in state court, a repercussion of a recent Supreme Court decision that could affect many bankruptcies.

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Stern v. Marshall: Narrow Holding, Broader Implications!

June 23rd, 2011 - Litigation, News Updates

In Stern v. Marshall, 564 U.S. ____ (June 23, 2011), the U.S. Supreme Court, in a 5–4 decision, held that the bankruptcy court could not, as a constitutional matter, enter a final judgment on a counterclaim that did not arise under Title 11 or in a case under Title 11, even though 28 U.S.C. § 157(b)(2)(C) expressly permits it to do so.

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Aftermath of Stern v. Marshall – BearingPoint Court declines to oversee lawsuit

June 23rd, 2011 - Litigation, News Updates

The e-ink is barely dry on the commentators’ articles and blog postings about the Supreme Court’s jurisdiction-affecting decision last month in Stern v Marshall, 10-179, 56 U.S. –, 2011 U.S. LEXIS 4791 (June 23, 2011).

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

December 7th, 2010 - BE Estate, News Updates

Additional Distribution Planned for Year End

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BearingPoint Trustee Says Execs Cost Co. Over $1B

November 23rd, 2010 - Litigation, News Updates

Law360, New York (November 30, 2010, 8:06 PM ET) — BearingPoint Inc.’s liquidating trustee is seeking permission to sue the technology consulting firm’s former CEO and board of directors in Virginia state court, accusing them of hindering the sale of the company and costing it more than $1 billion.

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BearingPoint, Inc. Unsecured Creditors to Receive $18 Million in First Distribution

May 13th, 2010 - BE Estate, News Updates

Recoveries to All Creditors to Surpass $438 million; Additional Recoveries Planned

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BearingPoint Liquidating Trustee Seeks Discovery from Cerberus

March 12th, 2010 - Litigation, News Updates

John DeGroote Services, LLC, the liquidating trustee of the BearingPoint, Inc. Liquidating Trust, filed a motion with the bankruptcy court earlier today seeking the ability to serve document requests on Cerberus Capital Management, L.P. and asking the court to require Cerberus to produce discovery at the offices of counsel for the liquidating trustee, Bingham McCutchen LLP.

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