Murdoch outlined a financing plan for Metromedia.

Fox Television Stations, a new company set up by publisher Rupert Murdoch to acquire seven Metromedia television stations, will exchange cash and as much as 1.15 million in preferred stock for about $1.9 billion in debt securities of Metromedia Broadcasting. Based on the stations’ current operating results, however, Fox Television said it won’t have enough cash flow to pay all of the required dividends and might refinance its debt or sell assets. Two Rupert Murdoch-controlled companies, News America and News Corp., said they will guarantee the preferred stock payments. Fox Television said it will seek a listing of its preferred stock on the American Stock Exchange and reserves the right to exchange the preferred stock for debentures of News America.