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- From: Mitch Halmu
- Date: Fri May 17 13:43:14 2002
On Fri, 17 May 2002, todd glassey wrote:
> PAIX is a division of MFN (Metropolitan Fiber Networks) as Above.NET is as
> well. That means they share MFN's connectivity and peering agreements and as
> such are incredibly rich environments. Especially with someone like Paul
> Vixie running it, (PAIX that is) my take is that these are number one
> I must admit though that I am a staunch Above.NET supporter and have been
> for ages having a single digit customer ID.
"Incredibly rich environments" indeed:
Metromedia Fiber misses interest payment
By BARBARA WOLLER
THE JOURNAL NEWS
(Original publication: May 17, 2002)
WHITE PLAINS - Metromedia Fiber Network - which has been struggling for
months to avoid a filing for bankruptcy court protection - reported
Wednesday night that it did not pay about $32 million in interest that
was due that day on $650 million of 10 percent senior notes.
The White Plains-based company, which has built fiber-optic broadband
communications systems within cities, said it will be in default on the
loan if it does not make the payment before a 30-day grace period expires.
The company also announced that it is delaying the filing with the U.S.
Securities and Exchange Commission of its quarterly report for the period
ended March 31. Metromedia Fiber had previously announced that it had
delayed filing with the SEC of its annual report for the year ending
Dec. 31, 2001.
"We're attempting to restructure the debt," said company spokeswoman
Kara Carbone. "We're still working on all alternatives. But if we don't,
we may have to seek protection under Chapter 11."
Industry analyst Victor Valdivia of Hudson River Analytics said yesterday
that he expects the company will ultimately file for Chapter 11 protection
under the U.S. Bankruptcy Code.
"We don't think there's a lot of upside at this point," Valdivia said.
In March, the company defaulted on an $8.1 million interest payment due
to Nortel Networks on a $231 million loan. In mid-April the company
defaulted on a $30 million interest payment on a loan of $975 million
from Verizon Communications.
Metromedia Fiber was able to stave off Chapter 11 in October when it
secured a $611 financial package in an environment where lenders have
not been willing to provide money to telecom companies. But the company's
troubles did not go away.
The industry has seen a meltdown in the weak economy, and Metromedia Fiber
has suffered because many of its customers cannot pay their bills.