BearingPoint (16,000 employees) which was spun out of KPMG in 2001 filed for bankruptcy. BearingPoint provides technology and management consulting solutions and had always reported losses since 2001.
The bankruptcy petition listed more than $1 billion in assets and more than $ 1 billion in liabilities. 30% of its business came from Government contracts and the firm may have to sell off some its business units to help deal with the debt.
I am still trying hard to understand how is it possible for a consulting and services firm to have so much debt.
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