May 20, 2009; BearingPoint Inc. (BGPTQ) committee of unsecured creditors filed with the U.S. Bankruptcy Court an objection to the Debtors' motion to approve a revised key employee incentive plan. According to the objection, the committee believes the Debtors cannot meet the requirements of Section 503(c)(1) or (c)(2) of the Bankruptcy code and that certain provisions of the revised KEIP act as retention payments to insiders, which is prohibited by the Bankruptcy Code. The committee also argues that the remainder of the revised KEIP should not be approved given that the Debtors have yet to provide the Court and the committee with a wind-down budget for the remainder of their Chapter 11 cases. According to the objection, the Debtors' plan to make payments of over $94 million in severance and PTO obligations to employees as part of the wind-down, in addition to the revised KEIP, further jeopardizes any return to unsecured creditors.
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