North American Network Operators Group

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RE: Re[4]: Metromedia Fiber warns of possible bankruptcy :-(

  • From: Deepak Jain
  • Date: Wed Mar 20 09:19:53 2002

On Tue, 19 Mar 2002 16:58:46 -0500 Deepak Jain <[email protected]> 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.



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