BearingPoint files for bankruptcy protection

By Chelsea Emery

NEW YORK (Reuters) - BearingPoint Inc BGPT.OB, which provides technology and management consulting services to the U.S. government, filed for Chapter 11 bankruptcy on Wednesday and said it reached an agreement with senior secured lenders to cut its debt load.

The McLean, Virginia-based company, which began as the consulting arm of KPMG LLP KPMG.UL and later struggled with accounting problems and a U.S. Securities and Exchange Commission probe, has been laboring under heavy debt exacerbated by an acquisition spree between 1999 and 2002.

Existing and new clients began to shy away from doing business with the company as concern about its ability to pay its debt obligations mounted, according to court filings.

BearingPoint made its bankruptcy filing with a prearranged restructuring plan so the process can be completed on an accelerated basis, it said, Overseas operations were not included in the filing.

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.