Metromedia International Group files plan, to continue operations

By Caroline Salls

Pittsburgh, Nov. 18 - Metromedia International Group, Inc. filed its plan of reorganization and related disclosure statement Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

The company said it will be reorganized under the plan, converted into a Delaware limited liability company and continue its operations.

Treatment of creditors will include:

• Holders of priority claims and secured Workers' Compensation claims will recover 100% in cash;

• Holders of Hauf secured claims will recover 90% in cash;

• Holders of general unsecured claims will receive cash equal to 70% of the allowed amount of their claims;

• Holders of appraisal claims will recover 100% through a share of 100% of excess cash, common B membership interests and new 10½% senior notes due 2017 equal to the difference between the allowed final appraisal amount and allowed non-appraisal amount of electing non-appraisal claimholders and the sum of excess cash and the common B membership interest distribution value;

• Holders of non-appraisal claims will be entitled to elect to receive either one preferred unit per share of preferred equity interests held by the claimant or its share of the sum of 100% of excess cash, plus common B membership interests, plus new notes in the principal amount equal to the difference between the allowed final appraisal amount and the allowed non-appraisal amount of claims of electing claimants and the sum of excess cash and the common B membership equity distribution value; and

• Holders of common equity interests will receive a share of common A membership interests.

Metromedia is a Charlotte, N.C., communications company that filed for bankruptcy on June 18. Its Chapter 11 case was filed under the name MIG, Inc., case number 09-12118.

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