Current management and board members will stay in place, said a spokesman.

It was not immediately clear if any job cuts would be necessary.

"The company plans to operate business as usual," said a spokesman. "Our staffing will be based on the needs of our business and the needs of our clients."

The spokesman declined to comment further on the topic.

BearingPoint's clients include 15 U.S. federal cabinet level-departments, 23 U.S. states and all of the top 10 global drug and biotechnology companies. It employs about 15,200 people.

DEBT REDUCED

As part of the prearranged plan, a $500 million senior secured credit facility will be replaced with a new secured, senior credit facility. New preferred stock will be issued, unsecured debt will be exchanged for different classes of common stock and all existing shares will be canceled.

As of September, assets were about $1.76 billion and liabilities were about $2.23 billion, according to court documents.

The company began as the consulting arm of KPMG, with the accounting firm creating a distinct business unit for those consulting services in 1997.