ComScore Says Failure to File 10K Report Violates Loan Termsby
Company won't meet March 20 deadline to complete annual filing
It's reviewing accounting after audit committee got message
ComScore Inc., which has delayed the filing of its annual report to regulators because of an accounting review, said it may be in violation of loan terms over of the expected failure to complete the work on time.
The company won’t meet a March 20 deadline, constituting an event of default under the terms of its credit agreement, according to a regulatory filing Friday. ComScore intends to remedy the default once an external audit is done.
The online and entertainment industry research firm saw its stock plunge earlier this month after disclosing that its audit committee received a message regarding the company’s accounting. ComScore began a review of the matter, delayed filing the year-end financial results and canceled an investor event scheduled for March 16.
The accounting review comes one month after ComScore acquired Rentrak in a stock swap valued at more than $800 million. ComScore tracks online viewership for websites and box-office performance of Hollywood films, among other services.
ComScore was little changed in extended trading. The stock rose 1.3 percent to $30.50 at the close in New York. It’s down 26 percent this year.