Carriers terminate agreements with troubled MFN

April 8, 2002--Verizon Global Networks and Genuity Solutions have pulled the plug on their respective fiber-optic infrastructure leases with Metromedia Fiber Network, Inc. (MFN). The two agreements were worth $350 million and $200 million, respectively, of which $235 million and $140 million, respectively, have already been paid to MFN.

April 8, 2002--Verizon Global Networks and Genuity Solutions have pulled the plug on their respective fiber-optic infrastructure leases with Metromedia Fiber Network, Inc. (MFN -- www.mfn.com). The two agreements were worth $350 million and $200 million, respectively, of which $235 million and $140 million, respectively, have already been paid to MFN. Verizon is continuing to engage in discussions with MFN concerning their relationship.

MFN says it also expects to begin negotiations with "the holders of its other indebtedness" regarding a consensual debt restructuring.

If the company is unable to successfully restructure its indebtedness, MFN may be required to file for protection under Chapter 11 of the U.S. Bankruptcy Code, the company stated in a release. In addition, any potential restructuring of MFN's indebtedness may result in substantial dilution to the company's existing stockholders.

More in Business