I was wrong about BearingPoint's business Model; turns out that you can bankrupt a services business.
"Between 1999 and 2002, the company took on debt to make various acquisitions.Translation: Senior management is 100% responsible for this bankruptcy.
The company later delayed filing its annual financial reports as it worked to establish internal controls. Corporate expenses rose, due to accounting and audit costs. The company also took charges related to the decline in fair value for some of its reporting units.
In 2005, the SEC had launched a formal probe in connection with the company's business dealings." - Reuters