EXHIBIT 99.1
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[GRAPHIC OMITTED - LOGO]MFN
NEWS RELEASE
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Corporate Headquarters 360 Hamilton Avenue White Plains, NY 10601 914.421.6700
www.mfn.com
FOR IMMEDIATE RELEASE
METROMEDIA FIBER NETWORK ANNOUNCES DEFERRAL OF INTEREST
PAYMENT ON VERIZON SUBORDINATED CONVERTIBLE NOTES
MFN WITHDRAWS GUIDANCE
MFN ALSO ANNOUNCES LETTER OF INTENT TO SELL PAIX CENTERS
FOR $50 MILLION
NEW YORK, MARCH 18, 2002. Metromedia Fiber Network, Inc. (NASDAQ: MFNX), the
leading provider of digital communications infrastructure, announced today that
it has deferred payment of approximately $30 million of interest due March 15,
2002 on its $975 million 6.15% Subordinated Convertible Notes issued to Verizon
Communications, Inc. MFN is currently negotiating with Verizon with respect to
this payment. If MFN neither reaches an agreement with Verizon nor makes this
interest payment on or before the expiration of a 30-day grace period an "event
of default" under the indenture governing these notes will occur.
MFN further announced that as a result of a general downturn in the global
communications industry, the Company has withdrawn its previously announced
revenue and normalized EBITDA guidance for the quarter ended December 31, 2001
and for the year ending December 31, 2002, its capital expenditure guidance for
the year ended December 31, 2001 and 2002 and its guidance that it would be
normalized EBITDA positive for the quarter ending March 31, 2002. MFN is unable
to provide revised guidance at this time.
MFN also announced that it will seek to restructure its indebtedness. Absent the
deferral of the interest payment to Verizon, MFN would not have been able to
make the interest payment and satisfy its other near-term cash requirements. At
February 28, 2002, MFN had approximately $3.3 billion of consolidated
indebtedness and approximately $37.3 million of unrestricted domestic cash and
cash equivalents. No assurance can be given that MFN will be able to
successfully restructure its indebtedness. If MFN is not able to successfully
restructure its indebtedness, MFN may be required to file for protection under
Chapter 11 of the U.S. Bankruptcy Code. In addition, any potential restructuring
of MFN's indebtedness may result in substantial dilution to MFN's existing
stockholders.
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MFN further announced that it had entered into a non-binding letter of intent to
sell its PAIX facilities for approximately $50 million in cash and an equity
interest in the purchaser. Consummation of the PAIX transaction is subject to a
number of significant conditions to closing, including execution of definitive
documentation, completion of due diligence, obtaining required consents, and
other customary conditions to closing. MFN expects the PAIX transaction to be
consummated in the second quarter of 2002, although no assurance can be given
that the transaction will be consummated. MFN expects net proceeds from the PAIX
sale at closing, after escrow holdbacks to be approximately $44.5 million;
however, a substantial portion of those proceeds will be required to repay
certain outstanding indebtedness unless a waiver is obtained. MFN continues to
explore other opportunities in order to satisfy its near-term and medium-term
liquidity needs.
METROMEDIA FIBER NETWORK, INC.
MFN is the leading provider of digital communications infrastructure solutions.
The Company combines the most extensive metropolitan area fiber network with a
global optical IP network, state-of-the-art data centers, award-winning managed
services and extensive peering relationships to deliver fully integrated,
outsourced communications solutions to Global 2000 companies. The all-fiber
infrastructure enables MFN customers to share vast amounts of information
internally and externally over private networks and a global IP backbone,
creating collaborative businesses that communicate at the speed of light.
Customers can take advantage of MFN's complete, end-to-end solution or select
individual components to complement their existing infrastructures. By leasing
MFN's metropolitan and regional fiber, customers can create their own, private
optical network with virtually unlimited, un-metered bandwidth at a fixed fee.
For more reliable, secure and high-performance Internet connectivity, customers
can use MFN's private IP network to communicate globally without ever touching
the public-switched network. Moreover, MFN's comprehensive managed services
enable companies to create a world-class Internet presence, optimize complex
sites and private optical networks, and transform legacy applications, all with
a single point of contact.
PAIX.net, Inc., a subsidiary of MFN and the original neutral Internet exchange,
offers secure, Class A co-location facilities where ISPs and other
Internet-centric companies can form public and private peering relationships
with each other, and have access to mulptiple telecommunications carriers for
circuits within each facility.
One network. One infrastructure. One source.
For more information on MFN, please visit our Web site at www.mfn.com.
THIS NEWS RELEASE CONTAINS FORWARD-LOOKING STATEMENTS THAT INVOLVE
RISKS AND UNCERTAINTIES. FACTORS THAT COULD CAUSE OR CONTRIBUTE TO SUCH
RISKS AND UNCERTAINTIES INCLUDE, BUT ARE NOT LIMITED TO, GENERAL
ECONOMIC AND BUSINESS CONDITIONS, COMPETITION, CHANGES IN TECHNOLOGY
AND METHODS OF MARKETING, AVAILABILITY OF FINANCING, EXECUTION RISK
RELATING TO THE TRANSACTION DESCRIBED HEREIN AND VARIOUS OTHER FACTORS
BEYOND THE COMPANY'S CONTROL. THIS ALSO INCLUDES SUCH FACTORS AS ARE
DESCRIBED FROM TIME TO TIME IN THE SEC REPORTS FILED BY METROMEDIA
FIBER NETWORK, INCLUDING THE MOST RECENTLY FILED FORMS S-3, 10-K AND
10-Q.
MEDIA RELATIONS: INVESTOR RELATIONS:
Kara Carbone Martin Cohen
Metromedia Fiber Network 212-606-4389
212-803-5596
KCARBONE@MFN.COM