Metromedia International Group reorganization plan effective Dec. 31

By Caroline Salls

Pittsburgh, Jan. 3 - Metromedia International Group, Inc. emerged from Chapter 11 bankruptcy when its modified joint second amended plan of reorganization took effect on Friday, according to a filing with the U.S. Bankruptcy Court for the District of Delaware.

The plan was confirmed on Nov. 19.

As previously reported, 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 general unsecured claims will recover 100% in cash, plus interest accrued from the bankruptcy filing to the plan effective date;

• Holders of supplemental employee retirement claims will recover 100% through SERP catch-up payments and monthly payments on account of benefits due after the effective date;

• Holders of preferred shareholder claims will receive a share of new notes, new warrants, beneficial interests in a class 5 trust and excess cash; and

• Holders of common equity interests will receive 100% of New Common LLC interests in the reorganized company, subject to the warrants.

Metromedia is a Charlotte, N.C., communications company that filed for bankruptcy on June 18, 2009. Its Chapter 11 case was filed under the name MIG, Inc., case number 09-12118.

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