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Title: |
Master Restructuring Agreement |
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Entities: |
AboveNet, Inc.; Chase Manhattan Bank; Citicorp USA, Inc.; First Union National Bank; Bank of New York; Akin, Gump, Strauss, Hauer & Feld LLP; Paul, Weiss, Rifkind, Wharton & Garrison; Shearman & Sterling |
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Date: |
2001 |
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Size: |
Preview shows 20KB of 132KB total |
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Price: |
$41 |
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ID: |
#340479 |
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MASTER RESTRUCTURING AGREEMENT
BY AND AMONG
METROMEDIA FIBER NETWORK, INC.,
METROMEDIA FIBER NETWORK SERVICES, INC.
AND
BECHTEL CORPORATION
-------------------------------
DATED AS OF OCTOBER 1, 2001
-------------------------------
--------------------------------------------------------------------------------
{PAGE}
TABLE OF CONTENTS
{TABLE}
{CAPTION}
PAGE
{S} {C} {C}
ARTICLE I
DEFINITIONS
1.1 DEFINITIONS........................................................................... 2
-----------
ARTICLE II
BECHTEL RESTRUCTURING
2.1 RESTRUCTURING......................................................................... 11
-------------
2.2 CLOSING............................................................................... 11
-------
ARTICLE III
REPRESENTATIONS AND WARRANTIES OF THE COMPANY AND MFNS
3.1 CORPORATE EXISTENCE AND POWER........................................................ 12
-----------------------------
3.2 AUTHORIZATION........................................................................ 12
-------------
3.3 GOVERNMENTAL AUTHORIZATION; THIRD PARTY CONSENTS..................................... 13
------------------------------------------------
3.4 COMPLIANCE WITH LAWS; PERMITS........................................................ 13
-----------------------------
3.5 LICENSES............................................................................. 14
--------
3.6 PRIVATE LICENSES..................................................................... 14
----------------
3.7 FRANCHISES........................................................................... 15
----------
3.8 COMPLIANCE WITH OTHER INSTRUMENTS.................................................... 15
---------------------------------
3.9 NO MATERIAL MISSTATEMENTS............................................................ 15
-------------------------
3.10 PERFECTION AND PRIORITY OF LIENS..................................................... 16
--------------------------------
3.11 VALID ISSUANCE OF COMMON STOCK....................................................... 16
------------------------------
3.12 CAPITALIZATION AND VOTING RIGHTS..................................................... 17
--------------------------------
3.13 SUBSIDIARIES......................................................................... 18
------------
3.14 AGREEMENTS........................................................................... 18
----------
3.15 LITIGATION........................................................................... 19
----------
3.16 TITLE TO PROPERTY, ASSETS AND LEASES................................................. 19
------------------------------------
3.17 ENVIRONMENTAL MATTERS................................................................ 20
---------------------
3.18 TAX RETURNS.......................................................................... 20
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3.19 PENSION PLANS........................................................................ 20
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3.20 INVESTMENT COMPANY ACT............................................................... 21
----------------------
3.21 PUBLIC UTILITY HOLDING COMPANY ACT................................................... 21
----------------------------------
3.22 FEDERAL RESERVE REGULATIONS.......................................................... 21
---------------------------
3.23 NO DEFAULT........................................................................... 21
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3.24 INSURANCE............................................................................ 21
---------
3.25 SOLVENCY............................................................................. 21
--------
{/TABLE}
{PAGE}
{TABLE}
{S} {C} {C}
3.26 PROJECTED FINANCIAL STATEMENTS......................................................... 21
------------------------------
3.27 NO MATERIAL ADVERSE CHANGE............................................................. 22
--------------------------
3.28 SEC DOCUMENTS; FINANCIAL STATEMENTS.................................................... 22
-----------------------------------
3.29 PRIVATE OFFERING....................................................................... 22
----------------
3.30 TERMS OF CERTAIN OTHER DEBT AGREEMENTS................................................. 23
--------------------------------------
3.31 AMOUNTS OWED UNDER THE MASTER SERVICES AGREEMENT....................................... 23
------------------------------------------------
3.32 PURCHASE MONEY INDEBTEDNESS............................................................ 23
---------------------------
3.33 OTHER RESTRUCTURING AGREEMENTS......................................................... 23
------------------------------
3.34 RESTRICTIONS ON COLLATERAL............................................................. 23
--------------------------
3.35 WRITTEN CONSENT........................................................................ 24
---------------
3.36 BROKERS................................................................................ 24
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ARTICLE IV
REPRESENTATIONS AND WARRANTIES OF BECHTEL
4.1 PURCHASE FOR OWN ACCOUNT............................................................... 24
------------------------
4.2 RESTRICTED SECURITIES.................................................................. 25
---------------------
4.3 ACCREDITED INVESTOR.................................................................... 25
-------------------
4.4 EXISTENCE AND POWER.................................................................... 25
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4.5 AUTHORIZATION; NO CONTRAVENTION........................................................ 25
-------------------------------
4.6 BINDING EFFECT......................................................................... 25
--------------
4.7 DISCLOSURE OF INFORMATION.............................................................. 26
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ARTICLE V
CONDITIONS TO THE OBLIGATION
OF BECHTEL TO CLOSE
5.1 REPRESENTATION AND WARRANTIES.......................................................... 26
-----------------------------
5.2 COMPLIANCE WITH THIS AGREEMENT......................................................... 26
------------------------------
5.3 WARRANT AGREEMENT, NOTE AND OTHER DOCUMENTATION........................................ 26
-----------------------------------------------
5.4 ORGANIZATIONAL DOCUMENTS, ETC.......................................................... 27
-----------------------------
5.5 FINANCIAL OFFICER'S CERTIFICATES....................................................... 27
--------------------------------
5.6 CONSENTS............................................................................... 27
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5.7 OPINIONS OF COUNSEL TO THE OBLIGORS.................................................... 27
-----------------------------------
5.8 FEES................................................................................... 28
----
5.9 ISSUANCE OF CONVERTIBLE DEBT OR EQUITY................................................. 28
--------------------------------------
5.10 VERIZON DEBT AGREEMENT................................................................. 28
----------------------
5.11 VENDOR AGREEMENTS...................................................................... 28
-----------------
5.12 CITICORP FACILITY...................................................................... 29
-----------------
5.13 OTHER TRANSACTIONS..................................................................... 29
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5.14 FINANCIAL PROJECTIONS.................................................................. 29
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5.15 NO MATERIAL ADVERSE CHANGE............................................................. 29
--------------------------
5.16 NO MATERIAL JUDGMENT OR ORDER.......................................................... 29
-----------------------------
5.17 NO LITIGATION.......................................................................... 30
-------------
5.18 INSURANCE.............................................................................. 30
---------
{/TABLE}
(ii)
{PAGE}
{TABLE}
{S} {C} {C}
5.19 DUE DILIGENCE.......................................................................... 30
-------------
5.20 BASIC DOCUMENTS........................................................................ 30
---------------
5.21 MECHANICS' AND MATERIALMANS' LIENS..................................................... 30
----------------------------------
5.22 CERTAIN ADDITIONAL CONDITIONS.......................................................... 30
-----------------------------
5.23 OTHER.................................................................................. 31
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ARTICLE VI
OTHER AGREEMENTS
6.1 MODIFICATION OF OTHER RESTRUCTURING AGREEMENTS......................................... 31
----------------------------------------------
6.2 TERMINATION AND RELEASE................................................................ 31
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6.3 LIQUIDATED DAMAGES AMOUNT.............................................................. 32
-------------------------
6.4 WRITTEN CONSENT........................................................................ 33
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ARTICLE VII
INDEMNIFICATION
7.1 INDEMNIFICATION........................................................................ 34
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7.2 CONTRIBUTION........................................................................... 34
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ARTICLE VIII
TERMINATION OF AGREEMENT
8.1 TERMINATION............................................................................ 35
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8.2 SURVIVAL............................................................................... 36
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ARTICLE IX
MISCELLANEOUS
9.1 SURVIVAL OF REPRESENTATIONS AND WARRANTIES............................................. 36
------------------------------------------
9.2 NOTICES................................................................................ 36
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9.3 SUCCESSORS AND ASSIGNS; THIRD PARTY BENEFICIARIES...................................... 37
-------------------------------------------------
9.4 AMENDMENT AND WAIVER................................................................... 37
--------------------
9.5 COUNTERPARTS........................................................................... 38
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9.6 HEADINGS............................................................................... 38
--------
9.7 GOVERNING LAW.......................................................................... 38
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9.8 SEVERABILITY........................................................................... 38
------------
9.9 RULES OF CONSTRUCTION.................................................................. 38
---------------------
9.10 ENTIRE AGREEMENT....................................................................... 39
----------------
9.11 FURTHER ASSURANCES..................................................................... 39
------------------
9.12 PUBLICITY.............................................................................. 39
---------
{/TABLE}
(iii)
{PAGE}
EXHIBITS
A Form of Note
B Form of Warrant Agreement
C Form of Intercreditor and Collateral Agency Agreement
D Form of Registration Rights Agreement
E Form of Junior Security Agreement
F 1 Form of Paul, Weiss, Rifkind, Wharton, & Garrison Opinion
F-2 Form of Akin, Gump, Strauss, Hauer, & Feld, L.L.P. Opinion
G Form of Written Consent
SCHEDULES
1.1 Convertible Securities Issued in Connection with the Restructuring
3.12 Convertible Securities and Options; Other Registrable Securities
3.15 Legal Proceedings
5.11 Vendor Agreements
(iv)
{PAGE}
MASTER RESTRUCTURING AGREEMENT
MASTER RESTRUCTURING AGREEMENT, dated as of October 1, 2001
(this "AGREEMENT"), by and between METROMEDIA FIBER NETWORK, INC., a Delaware
corporation (the "COMPANY"), METROMEDIA FIBER NETWORK SERVICES, INC., a Delaware
corporation and wholly-owned Subsidiary of the Company ("MFNS"), and BECHTEL
CORPORATION, a Nevada corporation ("BECHTEL").
WHEREAS, the Company and MFNS have each negotiated with
certain of their respective existing creditors and vendors as well as certain
new lenders, to provide additional liquidity to the Company and its Subsidiaries
by restructuring certain payables owed by the Company and/or its Subsidiaries to
such existing creditors and vendors (including the Nortel Financing and the
Vendor Financings) and/or the extension by such new lenders of additional debt
financing to the Company (including the Citicorp Facility, the Affiliate
Financing and the Verizon Facility) (the "RESTRUCTURING").
WHEREAS, in order to facilitate the Restructuring, the
Company, MFNS and Bechtel have agreed to restructure certain amounts owed by the
Company and MFNS to Bechtel pursuant to the Master Services Agreement and the
ancillary agreements thereto (the "BECHTEL RESTRUCTURING").
WHEREAS, the Company, MFNS and Bechtel have agreed that as
final settlement for and in order for the Company and its Subsidiaries to
finance the engineering, construction, installation, acquisition, lease,
development and/or improvement of a portion of MFNS' fiber optic network and
other Telecommunications Assets and all amounts due and owing to Bechtel under
the Master Services Agreement in respect thereof (except as set forth in
SECTIONS 6.2 and 6.3 hereof), and in order to effectuate the Bechtel
Restructuring, the Company will (i) pay to Bechtel the sum of US$9 million, (ii)
cause MFNS to issue to Bechtel an 8.5% convertible secured promissory note
substantially in the form of EXHIBIT A attached hereto (the "NOTE"), which Note
shall, among other things, be (a) convertible into shares of the Company's class
A common stock, par value US$0.01 per share ("COMMON STOCK"), (b) secured by the
assets set forth opposite Bechtel's name on ANNEX 2 to the Intercreditor and
Collateral Agency Agreement and (c) in the aggregate principal amount of US$89
million, (iii) issue to Bechtel a warrant (the "WARRANT") pursuant to the terms
of the Warrant Agreement substantially in the form of EXHIBIT B attached hereto
(the "WARRANT AGREEMENT"), which Warrant shall be exercisable for 25,000,000
shares of Common Stock in accordance with the terms thereof and (iv) terminate
the Master Services Agreement (except as set forth in SECTIONS 6.2 and 6.3
hereof), in each case in accordance with and pursuant to the terms of this
Agreement.
NOW, THEREFORE, in consideration of the mutual covenants and
agreements set forth herein, as final settlement of all amounts due and owing to
Bechtel, MFN and its Subsidiaries under the Master Services Agreement (except as
set forth in
{PAGE}
SECTION 6.2 and 6.3 hereof), and for other good and valuable consideration, the
receipt and adequacy of which are hereby acknowledged, the parties hereto agree
as follows:
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