Metromedia International makes interest payment on notes within grace period

By Carlise Newman

Chicago, April 30 - Metromedia International Group Inc. made the $8 million interest payment to U.S. Bank Corporate Trust Services, the trustee of its $152 million 10½ % senior discount notes due 2007, within the 30-day grace period provided under the senior notes.

The amount reflects the $7.98 million coupon payment that was due on the senior notes as of March 30, plus interest accrued since that date.

Metromedia International said it has also made revisions to the program of asset sales it initiated last year. First the company has stopped efforts to sell its core telephony assets in favor of pursuing further development of these businesses, and as a result the following properties are being withdrawn from the market: PeterStar in St. Petersburg, Russia, in which the company has a 71% equity interest; BCL, also in St. Petersburg, in which the company has a 100% equity interest; and Magticom in Tbilisi, Georgia, in which the company has a 34% equity interest.

Second, while the company will continue marketing of its cable TV and remaining radio station properties, the pace of that marketing effort will be moderated, allowing sufficient time for the company to realize higher sale proceeds.

"Debt has been reduced by nearly one-third as a result of the transaction concluded with Adamant and announced last week, which also generated $5 million in cash. Liquidity pressures have been further relieved through a program of overhead reductions that will cut annual overhead run-rate to $3 million to $5 million by year end. Additional liquidity will be realized from near-term dividend and asset sale proceeds," said Mark Hauf, chairman, president and chief executive officer of Metromedia International.

Metromedia International is a communications company based in New York.

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