Metromedia International completes exchange of Russian assets for $58.6 million notes, cash

New York, April 24 - Metromedia International Group, Inc. said it completed the exchanged of its ownership interest in some Russian businesses for $58.6 million face value of its 10½% senior discount notes, $5 million in cash and $3.1 million of accrued interest.

The New York owner of media and communications businesses in Eastern Europe and emerging markets said the exchange was with Adamant Advisory Services, a British Virgin Islands company.

Adamant will receive Metromedia International's ownership interests in Comstar, a Moscow based fixed-line telephony operator, Kosmos TV, a Moscow based cable television operator, and the company's Russian radio assets.

"Completion of this transaction is an important step in our management of the liquidity pressures that the company currently faces," said Mark Hauf, Metromedia International's chairman, president and chief executive officer, in a news release.

"By eliminating a substantial portion of the company's outstanding debt, we have significantly improved our ability to address and resolve the company's remaining liquidity issues. Our goal continues to be centered upon ensuring that the company is able to meet its financial obligations when they become due."

Metromedia International has $152 million principal amount of the senior notes outstanding after the transaction.

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