$21.5 million in damages have been awarded to plaintiffs who won a bond default ruling against BearingPoint Inc. (BE) but they don't think the amount will hurt the consulting firm nor ruin the company, according to this WashingtonPost.com article.
BearingPoint failed to file up-to-date financial reports, a violation of the bond agreement that has become a common tool used by creditors, most typically hedge funds, to extract concessions. A group of bondholders sued the company and a New York court determined the firm was in default on about $200 million in corporate debt.
Unlike other companies who just concede the technical default and settle with bondholders BearingPoint fought and lost and have appealed the court ruling and asked other creditors to grant waivers to avoid similar suits. The company's stock was down more than 8 percent.
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