Metromedia International considers bankruptcy

Metromedia International Group Inc., a provider of telecommunication, Internet and cable TV services in Eastern Europe, the former Soviet Union, China and other emerging markets, may file for bankruptcy if the company fails to find money and restructure its debt.

Metromedia International Group, a provider of telecommunication, Internet and cable TV services in Eastern Europe, the former Soviet Union, China and other emerging markets, may file for bankruptcy if the company fails to find money and restructure its debt.

The New York company will not be able to fund its operations and meet its financial obligations without selling some of its communication assets, it said Sunday in a statement.

Metromedia has held discussions with its noteholders about restructuring alternatives but has yet to reach an agreement, the company said. If the group fails to resolve its liquidity problem it may have to resort to other measures, including seeking bankruptcy protection, it said.

Metromedia owns and operates numerous communication ventures including fixed and mobile telephone networks, Internet and broadband cable. The company markets services largely to small and midsize enterprises, in addition to residential users.

In St. Petersburg, Russia, for instance, the company has a majority stake in a city-wide fiber-optic network that provides voice and data services to local businesses. It has a 50% stake in a similar network in Moscow.

Eastern Europe, like Western Europe, has been hit hard by the downturn in the communications sector. The slump in spending and the need to raise cash have prompted numerous investors in the region, including Deutsche Telekom AG, to mull the sale of assets.