Shares in Metromedia Fibre Networks, a telecoms firm which is scheduled to open a $75 million data hosting centre in Dublin this month, fell more than 30 per cent yesterday as the company warned it would file for bankruptcy if its outstanding funding agreements were not completed.

The company, hit hard by a sharp slowdown in capital spending and a widespread sell off in telecoms stocks, has been seeking funding to pay off looming interest payments for more than a month.

Metromedia said yesterday it had received a five-day extension on a $235 vendor financing commitment and signed a $150 million note facility led by Citicorp USA.