Metromedia files for Chapter 11

New York, May 20 - Metromedia Fiber Network, Inc. said it filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code, along with most of its domestic subsidiaries.

Metromedia said it had reached agreement with its senior lenders on funding to allow the company to implement its plan to become cash flow positive.

Included in the plan is "significant cost reductions through a substantial deleveraging" of its balance sheet, the disposal of non-productive properties (including idle data centers or non-essential offices), rejection of "burdensome" vendor contracts and reduction of personnel.

By shedding expenses and focusing on the highest margin operations, Metromedia said it expects to quickly stabilize its financial status.

Metromedia also said it has hired Impala Partners to assist in the restructuring and UBS Warburg to advise on strategic alternatives.

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