American Media Replaces Abaunza With Craven

Company Taps Third CFO Since 2005

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NEW YORK (AdAge.com) -- As its efforts to restate its financial results drag on, American Media Inc. fired its latest chief financial officer after less than eight months on the job. In a Friday filing with the Securities and Exchange Commission, American Media said today it had terminated Carlos A. Abaunza's employment and named John "Jack" Craven, who had been consulting for the company, to succeed him.

American Media, which publishes magazines from Star to Shape to Men's Fitness, is re-examining its financial statements for fiscal 2005 and the first half of fiscal 2006. But it missed two deadlines this summer to issue restatements and is now shooting for the end of October.

In a statement, Chairman-CEO David J. Pecker thanked Mr. Abaunza for his work on the restatement process so far. "American Media remains focused on the completion of the restatement of its financial statements," he said. "Mr. Craven's experience and expertise will greatly aid in the completion of this process."

Mr. Craven, who was a Time Inc. executive before opening his own consulting practice, becomes the third CFO at American Media since 2005. Mr. Abaunza had been hired after a seven-month search to replace Thomas Severson, who resigned after less than three months in the post.

Mr. Abaunza has agreed to serve as a consultant to American Media for three months, the company said.

Attempts to reach Mr. Abaunza late Friday were unsuccessful.
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