June 14, 2002 — (WEB HOST INDUSTRY REVIEW) — Communications infrastructure solution provider Metromedia Fiber Network Inc. (MFN.com) revealed on Thursday that the Securities and Exchange Commission has begun a formal investigation into the company?s past accounting practices that led to the previously announced restatement of results for the first three quarters of 2001.
The communications provider said in a statement that it has cooperated fully with the investigation and plans to continue to do so.
Metromedia defaulted on $675 million in debt in April. The company said it would restate financial results for much of last year when auditor KPMG LLP deemed Metromedia?s internal systems and controls too flawed to review the results in keeping with normal accounting procedures.
The company?s shares were delisted from the Nasdaq in May, and it, along with most of its domestic units, filed for Chapter 11 bankruptcy protection.
