MCLEAN, Va., Oct. 31 /PRNewswire-FirstCall/ -- BearingPoint, Inc. , one of the world's largest management and technology consulting firms, announced today that the expiration date for the previously announced consent solicitation for amendments to and waivers under the indentures governing its 2.50% Series A Convertible Subordinated Debentures due 2024 (CUSIP No. 074002AA4) and 2.75% Series B Convertible Subordinated Debentures due 2024 (CUSIP No. 074002AB2) has been extended until 5:00 p.m. New York City time on October 31, 2006. BearingPoint reserves the right to amend the consent solicitation for the Debentures or further extend the expiration date at its sole discretion.
As previously announced, holders of a majority of the outstanding aggregate principal amount of the Company's 5.00% Convertible Senior Subordinated Debentures due 2025 (CUSIP No. 0074000AE0) have submitted consents and the consent solicitation period with respect to the 5% Debentures has expired.
About BearingPoint, Inc.
BearingPoint, Inc. is one of the world's largest providers of management and technology consulting services to Global 2000 companies and government organizations in 60 countries worldwide. Based in McLean, Va., the firm has over 17,000 employees and major practice areas focusing on the Public Services, Financial Services and Commercial Services markets. For nearly 100 years, BearingPoint professionals have built a reputation for knowing what it takes to help clients achieve their goals, and working closely with them to get the job done. For more information, visit the Company's website at http://www.bearingpoint.com/.
Forward-Looking Statements; Risks and Uncertainties
This release contains forward-looking statements. Words such as "may," "will," "could," "would," "should," "anticipate," "continue," "expects," "intends," "plans," "believes," "in the Company's view" and similar expressions are used to identify these forward-looking statements. These statements are only predictions and as such are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict and which could materially and adversely affect the Company's financial condition and results of operations. Forward-looking statements are based upon assumptions as to future events that may not prove to be accurate. Actual outcomes and results may differ materially from what is expressed or forecasted in these forward-looking statements. As a result, these statements speak only as of the date they were made, and the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Actual results may differ from the forward-looking statements for many reasons, including, without limitation, the following:
The Company's continuing failure to file required periodic reports with the SEC could result in a loss of business, delisting from the New York Stock Exchange and defaults and accelerations under the 2005 Credit Facility and its debentures, if it ceases to obtain extensions and waivers for these filings. If the Company is not successful in obtaining the requisite consents from all series of Debentures, the holders of a series of Debentures may seek to declare that an event of default has occurred under the applicable indenture and may seek to accelerate the Debentures, which may trigger cross-default or cross-acceleration provisions in the Company's other indebtedness.
The Company's current cash resources might not be sufficient to meet its expected near-term cash needs (e.g., to settle lawsuits).
The Company's 2005 Credit Facility imposes a number of restrictions which may negatively affect its ability to finance future needs, or do so on favorable terms. If the Company violates these restrictions, the Company could be in default under the 2005 Credit Facility or other indebtedness.
If the Company's operating performance is materially and adversely affected, the Company may be required to post cash collateral to support obligations under the 2005 Credit Facility, as well as surety bonds, and the Company may be unable to obtain new surety bonds, letters of credit or bank guarantees in support of client engagements on acceptable terms, if at all. If the Company's borrowings under the 2005 Credit Facility or debentures were to be accelerated, there would be a material and adverse effect on the Company's financial condition.
Downgrades of the Company's credit ratings could materially and adversely affect its financial condition.
Please refer to Exhibit 99.1 of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2004, and other reports filed with the U.S. Securities and Exchange Commission and available at http://www.sec.gov/ for additional information regarding risk factors.