Mar 18, 2002 : MFN Says It May Go Bankrupt
📅 - Metromedia Fiber Network (mfn.com), which provides fiber-optic Internet connectivity to high-end clients warned today it might be forced to file for bankruptcy protection if it cannot restructure its debts.
The company, which had approximately $3.3 billion in consolidated debt and $37.3 in cash as of Feb. 28, warned it could not guarantee that the restructuring would be a success.
"In addition, any potential restructuring of MFN's indebtedness may result in substantial dilution to MFN's existing stockholders," the company said in a release.
Metromedia also said it had deferred a $30 million interest payment due March 15 on its $975 million worth of convertible notes issued to telecom Verizon Communications, and also withdrew its guidance for the quarter ended Dec. 31 "as a result of a general downturn in the global communications industry," the release said. "MFN is unable to provide revised guidance at this time."
Metromedia said it is negotiating with Verizon with respect to its deferred payment, but warned it could potentially default if an agreement was not reached within 30 days.
The company also plans to sell its PAIX facilities for approximately $50 million, and will use most of the proceeds of the sale to pay down its debt.
The company, which had approximately $3.3 billion in consolidated debt and $37.3 in cash as of Feb. 28, warned it could not guarantee that the restructuring would be a success.
"In addition, any potential restructuring of MFN's indebtedness may result in substantial dilution to MFN's existing stockholders," the company said in a release.
Metromedia also said it had deferred a $30 million interest payment due March 15 on its $975 million worth of convertible notes issued to telecom Verizon Communications, and also withdrew its guidance for the quarter ended Dec. 31 "as a result of a general downturn in the global communications industry," the release said. "MFN is unable to provide revised guidance at this time."
Metromedia said it is negotiating with Verizon with respect to its deferred payment, but warned it could potentially default if an agreement was not reached within 30 days.
The company also plans to sell its PAIX facilities for approximately $50 million, and will use most of the proceeds of the sale to pay down its debt.
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URL source: http://www.thewhir.com/marketwatch/mfn031802.cfm
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