Metromedia Fiber Network disclosure statement approved, McCaw buys trade claims

By Carlise Newman

Chicago, July 17 - Metromedia Fiber Network Inc. said it received court approval for its disclosure statement, clearing the way for a vote on its reorganization plan.

The company's creditors' committee, including one of its largest creditors, Franklin Mutual Advisers, supports the plan and is recommending that creditors vote in favor of approval. A confirmation hearing is expected to take place in late August or early September.

As previously announced, MFN will become AboveNet Inc. upon emergence from Chapter 11.

In addition Metromedia said Fiber LLC, an entity owned by telecom industry investor Craig McCaw, has purchased certain trade claims. The claims will translate into an equity ownership interest in AboveNet.

The reorganization plan provides for a $50 million rights offering to creditors, and Fiber LLC and the Kluge Trust have agreed to purchase any outstanding portion of the rights offering not purchased by other creditors. The New York-based fiber optic communications company has guaranteed Fiber LLC a minimum $12.5 million participation in the rights offering.

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