Metromedia files for bankruptcy

Metromedia Fiber Network announced Monday that it has filed for Chapter 11 bankruptcy protection, becoming the latest upstart carrier to surrender to the market forces that have decimated the telecom industry. Metromedia Fiber reached an agreement with its lenders that allows the New York-based company to keep operating but requires the carrier to take serious measures to reach cash flow positive. The plan calls for the company to cut costs and focus on its more promising business lines. Metromedia Fiber will shed its nonessential assets, extricate itself from unfavorable vendor contracts and reduce its workforce. At the same time, the company will put most of its energy into its data hosting and fiber businesses. Metromedia builds and operates telecom networks within cities and offers its services to large businesses. The company attributes its financial woes to overbuilding its network.