MFN in Debt Trouble With Verizon

Metromedia Fiber Network announces lapse of Verizon 30-day grace period

April 16, 2002

1 Min Read

NEW YORK -- Metromedia Fiber Network, Inc. (MFN) (Nasdaq: MFNX - news), the leading provider of digital communications infrastructure, announced today that the 30 day cure period for the nonpayment of interest on its $975 million of Subordinated Debentures issued to an affiliate of Verizon Communications, Inc. had lapsed. As a result, an event of default has occurred under the indenture for these Subordinated Debentures, which would allow for the acceleration of the principal amount of the Subordinated Debentures. Any acceleration of the Subordinated Debentures will not be effective until five business days after notice of such acceleration has been provided to the administrative agent for MFN's $150 million senior secured credit agreement. The Company is currently in discussions with the holders of substantially all of its indebtedness including Verizon regarding a consensual restructuring of its indebtedness. There can be no assurances that MFN will reach agreements with its creditors. As previously announced, 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. In addition, any potential restructuring of MFN's indebtedness may result in substantial dilution to the Company's existing stockholders. Metromedia Fiber Network Inc.(MFN) Verizon Communications Inc.

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