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Stocks M / Metromedia Fiber Network
|Subject: so at last the word is out; commons are dead?||Date: 5/22/2003 4:00 AM|
|Author: muffinXL||Number: 2297 of 2302|
One sentence draws the attention:
"Current common stockholders wouldn't receive any distribution under the company's Chapter 11 reorganization plan, and their shares would be canceled, according to the disclosure statement."
so we are officially dead, I assume. The end of a long process....
Metromedia Fiber Sees Enterprise Value Of $230M-$330M
Wednesday, May 21, 2003 04:43 PM ET Printer-friendly version
WASHINGTON (Dow Jones)--Metromedia Fiber Network Inc. (MFNXQ, news) said it estimates the enterprise value of the company will be between $230 million and $ 330 million once it emerges from bankruptcy protection.
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According to the disclosure statement the company filed explaining its Chapter 11 plan, the estimate doesn't include remaining cash for operating the business.
Should its plan be confirmed, Metromedia Fiber would continue providing fiber- optic infrastructure and high-bandwidth Internet connectivity services and would make improvements to its systems and networks, court papers obtained recently by Dow Jones Newswires said.
Financial projections included in the disclosure statement said Metromedia Fiber expects revenue of $238 million and a net loss of $55.1 million for 2003.
The court filing said that for 2004, the company sees revenue of $276.6 million and net income of $35.1 million; for 2005, revenue of $330 million and net income of $49.8 million; and for 2006, revenue of $386.6 million and net income of $67.6 million.
Metromedia Fiber filed a motion May 9 with the U.S. Bankruptcy Court in Manhattan seeking to set July 2 as the hearing date for approval of the disclosure statement. The fiber-optic network company has asked that objections and responses to the disclosure statement be filed by June 23. A hearing on the motion is scheduled for Thursday.
The proposed disclosure statement, filed May 14, lists eight classes and several subsets of creditors with claims against the company. It lists five of the classes as impaired. Current common stockholders wouldn't receive any distribution under the company's Chapter 11 reorganization plan, and their shares would be canceled, according to the disclosure statement.
Lawrence Gottlieb, an attorney representing Metromedia Fiber in the case, said Wednesday that the company negotiated the disclosure statement extensively. Discussions with creditors are continuing and changes could result, but "this is about what it will look like," he said.
Separately, the court issued an order providing Metromedia more exclusivity to obtain votes for its plan, extending the deadline to Sept. 15 from July 16.
The company's reorganization plan provides for payment in full of administrative, professional and indenture trustee fees and certain tax claims.
For creditors with general secured claims of $10 million, Metromedia would return collateral securing the claims or make cash payments over time to settle them, the disclosure statement said.
Metromedia plans to exchange a new secured note for secured claims from Citicorp as agent for existing notes, the disclosure statement said. It also reached an agreement with a trust established by company insider John Kluge through which, if the plan is approved, it will issue 944,737 shares of new common stock in exchange for the release of the trust's claims and its participation in a $50 million rights offering when it emerges.
Unsecured claims against Metromedia, which total about $1.74 billion according to the disclosure statement, would see a return of about 2% through new stock, and also will receive warrants. Unsecured claims against Metromedia subsidiaries totaling about $730 million, would be treated differently, but also would receive new equity, court papers said.
Creditors with subordinated claims - totaling about $975 million - and equity holders aren't slated to receive any distribution under the plan, the disclosure statement said.
The reorganized company's new stock isn't expected to be listed on a national exchange, and likely won't be eligible for such a listing until the company catches up on its regulatory filings with the Securities and Exchange Commission, court papers said. Metromedia said it expects to renew its SEC reporting in the second half of the year, but likely won't be caught up until the latter part of 2004.
Metromedia Fiber, White Plains, N.Y., filed for bankruptcy protection in May 2002, saying it had overbuilt its communications network.
-By Christopher Scinta, Dow Jones Newswires; 202-628-7699; chris.scinta@ dowjones.com
Dow Jones Newswires
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