Item 5.02 Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
Appointment of Chief Financial Officer
On September 10, 2009, the Board of Directors of BearingPoint, Inc. (the
"Company") appointed David Johnston, a director with AlixPartners, LLP
("AlixPartners") and associated with its affiliate, AP Services, LLC ("APS"),
internationally known business and financial advisory firms, as the Company's
Chief Financial Officer, effective immediately. In connection with the
appointment of Mr. Johnston as Chief Financial Officer, Kenneth A. Hiltz, also
with AlixPartners, will cease to serve as the Company's Chief Financial Officer
effective concurrently with Mr. Johnston's appointment. Mr. Hiltz will continue
to advise the Company on a part-time basis. The Company believes that the
appointment of Mr. Johnston as its Chief Financial Officer is consistent with
the Company's plans regarding the liquidation of its business in connection with
its bankruptcy proceedings.
The Company has previously retained AlixPartners and APS to assist the
Company with various matters relating to its bankruptcy and previously proposed
restructuring. Mr. Johnston has been appointed as the Company's Chief Financial
Officer pursuant to an Agreement for Interim Management and Restructuring
Services between the Company and APS, which was previously filed as Exhibit
10.92 to the Company's Annual Report on Form 10-K for the fiscal year ended
December 31, 2008. For Mr. Johnston's services, the Company will pay APS a fee
based on an hourly rate for time worked by Mr. Johnston and will also pay or
reimburse APS for reasonable out-of-pocket expenses. Since Mr. Johnston will not
be an employee of the Company, Mr. Johnston will not receive any compensation
directly from the Company and will not participate in the Company's employee
benefit plans.
Prior to his appointment as the Company's Chief Financial Officer,
Mr. Johnston, 35, has been supporting the Company with its bankruptcy and
restructuring efforts as the restructuring and finance lead since October 2008.
Mr. Johnston has held numerous interim management and lead restructuring advisor
roles since joining AlixPartners in 1998. Some of his more recent major
assignments include serving as the lead restructuring advisor for Remy
International "DelcoRemy", a Tier 1 auto supplier, from 2007 to 2008 and for
Calpine Canada, a subsidiary of Calpine Corp., from 2005 to 2007, serving as the
Chief Accounting Officer and Controller and post-confirmation wind-down Chief
Financial Officer for AT&T Latin America, a provider of telecom services, from
2003 to 2004 and serving as the Senior Vice President of Finance and Treasurer
of Sunterra Corporation, a timeshare resort developer, from 2000 to 2002. Prior
to joining AlixPartners, Mr. Johnston began his career in Public Accounting with
Plante & Moran LLP.
Appointment of Treasurer
On September 10, 2009, the Board of Directors of the Company appointed
Charles N. Braley, a director with AlixPartners, as Treasurer of the Company,
effective immediately. The Company believes that the appointment of Mr. Braley
as its Treasurer is consistent with the Company's plans regarding the
liquidation of its business in connection with its bankruptcy proceedings.
