what do you make of this announcement? would you buy at .75?
Friday September 7, 8:11 am Eastern Time
Metromedia gets financing, but warns on bankruptcy
NEW YORK, Sept 7 (Reuters) - Metromedia Fiber Network Inc. (NasdaqNM:MFNX - news), on Friday said it received an extension on a $235 million vendor financing agreement and a $150 million note facility, but warned it would file for bankruptcy if the finance agreements are not completed.
Metromedia -- a telecommunications company backed by VerizonCommunications (NYSE:VZ - news) and hard hit by a sharp slowdown in capital spending and a sell-off in telecommunication companies -- said it received an extension until September 12 for $235 million in vendor financing.
It also said it signed a $150 million note facility led by Citicorp USA (NYSE:C - news), which is subject to several conditions including the closing of $230 million of convertible debt financing, the closing of $235 million in vendor financing and agreements from other vendors to defer payments owed to them.
As part of the agreement, which will terminate on September 17 if it is not closed before that, Citicorp agreed to purchase $62.5 million of notes, with other lenders agreeing to purchase the remaining $87.5 million. |
