Metromedia Fibre Network, the telecoms company which employs 35 people in Dublin, yesterday said it had secured vendor financing of $235 million (€258 million).

The funding, which has an expiry date of September 4th, leaves the company $50 million short of the $665 million required to secure its future.

Such financing is usually in the form of deferred payments from its customers' vendors.

Metromedia believes a favourable outcome to its discussions can be achieved soon, it is understood.

The company has a $75 million data centre at the Citywest business park and a $40 million fibre ring in Dublin.

The financing secured yesterday was conditional on closure of other financing deals, including a $150 million note facility from Citicorp and commitments of $230 million from other sources.

Metromedia's shares rose 8 US cents to 72 cents in early trading yesterday on the Nasdaq following the news.