Posted On: June 8, 2010
BearingPoint Bankruptcy Trustee Sues Yale; Seeks Return of Donations
The court-appointed bankruptcy trustee in the BearingPoint Chapter 11 bankruptcy has filed suit against Yale University, seeking the return of more than $8 million in donations the consulting firm made to endow a chair in management and name university facilities.From a Reuters report on the suit:
The liquidating trustee, John DeGroote Services LLC, contends in a lawsuit that BearingPoint has gained no tangible benefit from committing to pay $30 million to name buildings and endow a professorship at the Ivy League school.
The money was to have been paid over seven years starting in the first quarter 2007. BearingPoint filed for bankruptcy in February 2009.
"No material consideration flowed to BearingPoint, and no benefit to its business or assets was derived from the endowing of chairs or the naming of buildings at Yale," according to the suit filed on Friday in U.S. Bankruptcy Court in Manhattan.
A Yale University spokesman declined to comment.
According to the lawsuit, BearingPoint paid $2 million to fully fund in perpetuity an endowed chair: a professorship at the Yale School of Management.
The case is In re BearingPoint, Inc., et al, 09-10691, U.S. Bankruptcy Court, Southern District of New York.
BearingPoint originally planned to reorganize under Chapter 11 bankruptcy rules, but later abandoned that plan and liquidated its assets.
If you need to information on filing Florida bankruptcy, contact our Jacksonville, Florida bankruptcy law firm.
Greg Gilbert
Keith Maynard
