MFN gets extension, with strings

Metromedia Fiber Network has received three more extensions in its effort to raise the cash it needs to stay afloat, with additional—and somewhat startling—strings attached.

The company received an extension until Oct. 1 on a $150 million note facility led by Citicorp. In addition to being required to close on other funding sources totaling at least $430 million, the funding commitment requires that the destruction of the World Trade Center will not result in a material adverse effect on MFN’s business, assets, operations, financial condition or liabilities.

MFN also received an extension until Sept. 19 on the commitment letter for $235 million of vendor financing and until Sept. 21 on a commitment for a $50 million convertible debt investment, both of which are contingent upon the closing of the company’s other funding vehicles.

If MFN is unable to raise the cash it needs, the metro fiber provider has said it will seek bankruptcy protection.