Metromedia Fiber warns of possible bankruptcy :-(

Wed Mar 20 14:26:10 UTC 2002

IIRC, The terms of the BA/GTE merger agreement with the FTC stipulate that 
Verizon may re-acquire Genuity once they receive approval to market inter-LATA 
services in most (or maybe all, someone refresh my memory) of the states 
where Genuity maintains service points.

Of course, if Tauzin-Dingell passes, this will speed things up 
substantially. :/

-C

On Wed, Mar 20, 2002 at 09:16:53AM -0500, Deepak Jain wrote:
> 
> 
> 
> On Tue, 19 Mar 2002 16:58:46 -0500 Deepak Jain <deepak at ai.net> wrote:
> > Since they are defaulting on a $975B note to Verizon, and since they have
> > been saying Verizon does lease dark fiber from them, it would be the
> > easiest
> > thing in the world for Verizon to take control of MFNX.
> 
> > The real question is will they merge it with Genuity?
> 
> 1) $975B seems a tad large
> 
> 2) it was my understanding that Genuity was spun off when GTE merged with
> BA, a requirement imposed by the regulators.
> 
> richard
> 
> ----
> 
> 1) Agreed, s/B/M
> 
> 2) I believe Genuity is vastly still owned by Verizon, even though it is
> publicly owned. I don't remember whether they actually maintained a majority
> or maintained warrants to buy the majority of the shares, but the idea is
> the same.
> 
> Both Genuity and MFNX have lots of debt held by Verizon, and this is plenty
> of leverage when one needs to renegotiate their debt covenants.
> 
> Deepak Jain
> AiNET
> 