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While Granting An Extension, Creditors Seek Audit Of BearingPoint

BearingPoint says it will continue negotiations with creditors with the aim of ultimately moving the deadline for the filing of its 2006 form 10-K to June.
Government and commercial systems integrator BearingPoint said its creditors have temporarily agreed to extend a deadline for the company to file its 2006 annual report while requesting that it hire an auditor to review its accounts receivables.

In a document filed Monday with the Securities and Exchange Commission, BearingPoint said its lenders have moved the deadline by which it must either file the report on default on loan agreements to April 11.

Until then, BearingPoint -- which holds a contract to help rebuild financial systems in Iraq -- said it would continue negotiations with creditors with the aim of ultimately moving the deadline for the filing of its 2006 form 10-K to June.

In the filing, BearingPoint also said its lenders have asked the company to retain an auditor to review its accounts receivables in North America.

In January, BearingPoint replaced its chief operating officer, naming Accenture veteran Ed Harbach to the post. Harbach also assumed the title of president, reporting to BearingPoint CEO Harry You -- also a former Accenture executive.

BearingPoint failed to file its annual reports for fiscal 2004 and 2005 on time. It also failed to file quarterly reports for the past six quarters prior to January.

Despite the reporting mess, the company continues to win sensitive government deals.

Last month, the United States Agency for International Development gave BearingPoint a contract to assist with the rebuilding of public and private institutions in Afghanistan.

Under the five-year deal, valued at $218.6 million, BearingPoint consultants will help improve the operational performance of governments, businesses, and nongovernmental organizations as part of USAID's Afghans Building Capacity program.

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