[46200] in North American Network Operators' Group
Re: Re[4]: Metromedia Fiber warns of possible bankruptcy :-(
daemon@ATHENA.MIT.EDU (Chris Woodfield)
Wed Mar 20 09:27:17 2002
Date: Wed, 20 Mar 2002 09:26:10 -0500
To: Deepak Jain <deepak@ai.net>
Cc: Richard Welty <rwelty@averillpark.net>, nanog@nanog.org
Message-ID: <20020320142609.GA22526@semihuman.com>
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In-Reply-To: <GPEOJKGHAMKFIOMAGMDIGELFKHAA.deepak@ai.net>
From: Chris Woodfield <rekoil@semihuman.com>
Errors-To: owner-nanog-outgoing@merit.edu
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@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
>
