MORGAN FILES COMPLAINT AGAINST METROMEDIA
<Metromedia Co> said Morgan
Guaranty Trust Co of New York filed a complaint against
Metromedia for default under the indenture to which its
subordinated debentures are outstanding.
    The debentures were issued in June 1984 in connection with
Metromedia's leveraged buyout. Morgan Guaranty, the trustee
under the indenture, said Metromedia's liquidation constituted
an event of default.
    It is requesting Metromedia pay 100 pct of the principal
amount plus a default amount equal to 575 dlrs per 1000 dlr
principal amount of the debentures.
    Metromedia said only five pct of the debentures remain
outstanding as a result of a November 1986 purchase offer and
previous offers under which Metromedia bought 103 mln dlrs
principal amount of debentures at 803.70 dlrs per 1,000 dlr
principal amount.
    Notwithstanding such technical default, Metromedia, which
dissolved on December 17, 1986, said it will pay all of its
liabilities.
   
 Reuter
