Raytheon Ordered to Turn Over Document

An Idaho state court put Raytheon Co. on the defensive, ordering the maker of Patriot missiles to surrender a key document to struggling construction giant Washington Group International. Idaho District Judge Deborah Bail found that Raytheon withheld an audited balance sheet promised last year when Washington Group first bought Raytheon’s construction and engineering division. WGI claims the absence of the document and fraudulently misleading financial statements forced the construction firm to seek bankruptcy protection last week. Judge Bail’s order also questioned the efforts and motives of Big Five accounting firm PricewaterhouseCoopers in the audit.

If Raytheon does not produce the audited balance sheet by May 29, the Idaho judge said she will select “a nationally recognized accounting firm to oversee the purchase price adjustment process.” Shares of Raytheon, which has been dogged by more than $9 billion in debt, closed at $27.90 on the NYSE. Boise, Idaho-based Washington Group, filed for Chapter 11 last week, claiming its troubles stemmed in part from Raytheon using “inappropriate accounting practices” and fraudulently misrepresenting liabilities for the unit.