Westwood One Disputes Report That It's A Big Financial Risk
January 28, 2010 at 1:41 PM (PT)
A FORBES.COM story on the Riskiest Financial companies has drawn a strong rebuke from WESTWOOD ONE, which was listed in the top 10. WW1 claims the article's allegations were "misleading and based on outdated and inaccurate information, and that it fails to cite the basis for its conclusions."
"Forensic accounting" firm AUDIT INTEGRITY listed companies it allegedly considered to be at "financial risk" based on a study of a series of "proprietary models." Since the study concludes that the average probability of bankruptcy for these companies is only 8%, WESTWOOD ONE asserts, "It is extraordinarily misleading to associate phrases such as 'risk lists' and 'likely to file for bankruptcy' with these companies, when Audit Integrity’s own model reflects that a bankruptcy filing is unlikely to happen."
Prior to publication of the article, WESTWOOD ONE alleges that it contacted AUDIT INTEGRITY to note that "the article failed to appropriately reflect WESTWOOD ONE’s 2009 recapitalization of its equity and refinancing of its long-term debt, which substantially strengthened the Company’s capital and financial structure."
In conclusion: "WESTWOOD ONE has consistently reported on its turnaround, which is based on a clear strategic focus to realign its capital structure, reduce operating expenses, develop new programming, and invest in the sales force and distribution channels ... WESTWOOD ONE is committed to its core mission of meeting its affiliate and advertising customers’ needs with quality programming and services to help build their businesses."