MFN Files For Bankruptcy

Metromedia Fiber Networks

MFN said it reached an agreement with its senior secured lenders to fund the company while it implements a restructuring plan to generate a positive cash flow.

"We believe that our core metro-fiber and data center businesses are some of the best assets in the telecommunications industry," John Gerdelman, president and CEO of MFN, said in a statement. "However, in growing the business, we--along with others in the industry--outpaced the demand and, as a result, overbuilt."

MFN had said in April that it might have to file for bankruptcy if it couldn't reach an agreement to restructure its debt with its creditors. At the time, the fiber-optics network provider defaulted on a $975 million interest payment to Verizon.