The Nasdaq Stock Market halted trading in shares of struggling long haul carrier Metromedia Fiber Network, Inc. on Thursday, one day after it put off filing its annual report over accounting questions.

Trading was halted at 5 cents after the Nasdaq requested additional information about the company's financial situation, which looks increasingly bleak after it defaulted on yet another corporate loan payment this week.

In addition, its auditor, KPMG, issued a statement that it didn't have enough information to sign off on Metromedia's annual report "because MFN's internal control structure and policies and procedures for the preparation of interim financial information did not provide an adequate basis for them to complete such a review."

As a result, MFN, which has said for months now that a bankruptcy filing is likely, said it expects to restate its quarterly results for each of the first three quarters of the 2001 fiscal year.

On Wednesday evening, Metromedia announced that it would delay filing its annual report to the Securities and Exchange Commission, after it missed its extended filing deadline of April 16th.

At the start of the week, Metromedia announced it had missed a $30 million payment to an affiliate of Verizon Communications (NYSE:VZ) on $975 million worth of notes.

The news came two weeks after the company missed payments on about $674 million worth of bonds and notes, a default triggered by a missed payment to Nortel Networks on a $231 million note.

The prior and latest defaults further complicate a $611 million financing package that it arranged last fall after it missed a payment on part of that deal, triggering cross defaults on other notes. The company blames the "general downturn in the global communications industry" for its current situation.

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Metromedia officials have said they are restructuring their operations to include a possible $50 million sale of their Internet exchange, PAIX.net, Inc., along with an equity investment in the buyer's company. Escrow payments on the transfer at closing would cost roughly $4.5 million, while the remaining assets would be used to pay off debts.