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Technology Stocks : PSIX up 26.5%, Takeover(?) -- Ignore unavailable to you. Want to Upgrade?

To: washcapsfan who wrote (5619)	4/3/2001 12:03:08 PM
From: Glenn Petersen	Respond to of 5650

BK "likely" for PSIX: newsday.com AP Business PSINet Faces Likely Reorganization ASHBURN, Va. (AP) -- Internet communications provider PSINet Inc. said Tuesday that it faces a shortage of cash and likely will seek federal bankruptcy protection. The company said it told the Securities and Exchange Commission on Monday that because of changing financial circumstances, it would miss the deadline for filing its financial report for 2000. Outside consultants are helping the company determine the value of its assets to help complete its financial statements. PSINet took restructuring charges during the first nine months of 2000 and said there could be more restructuring and impairment charges in the fourth quarter. PSINet has hired Goldman, Sachs & Co. to help determine its financial alternatives, including possibly entering a strategic alliance or selling all or part of the company. It has hired another firm to help it restructure debt. The company likely will reorganize under federal bankruptcy code, PSINet officials said. Regardless of the success of those efforts, the company said its common stock likely will have no value. Ashburn-based PSINet provides corporate Internet access and private networks, Web and database hosting and managed Internet security. Its shares were trading unchanged at 19 cents on Tuesday morning on the Nasdaq Stock Market. (PROFILE (CO:PSINet Inc; TS:PSIX; IG:SVC;) ) AP-NY-04-03-01 1144EDT<

To: washcapsfan who wrote (5619)	4/3/2001 1:00:41 PM
From: Luce Wildebeest	Read Replies (1) \| Respond to of 5650

PSINet Faces Cash Crunch By Ian Simpson NEW YORK (Reuters) - Internet access provider PSINet Inc. (NasdaqNM:PSIX - news) said on Tuesday it was running out of cash and might reorganize under bankruptcy laws. The company, which also provides Web hosting services, said it would not be able to file its 2000 financial report in the required period. PSINet, based in Ashburn, Va., blamed ``rapidly changing circumstances'' for the delay. It said it believed more restructuring and impairment charges, possibly significant, would be posted for the fourth quarter. The company said that as of March 30, it had cash, cash equivalents, short-term investments and marketable securities of about $254 million. About $27 million of that amount secures obligations under letters of credit and other agreements. PSINet, whose name appears on the stadium housing the Baltimore Ravens pro football team, said funds from the sale of assets would not be enough to meet its cash needs under plans the company was weighing. ``Even if one or more of such alternatives is successfully implemented by the company, there can be no assurance that the company will not run out of cash,'' the statement said. ``These efforts are likely to involve the company's reorganization under the federal bankruptcy code.'' PSINet said it expected to get a going concern qualification in its audit opinion from PricewaterhouseCoopers. The company said it was likely that its stock would have no value, even with the reorganization and other efforts. It added that it may fail to meet capital requirements to continue being listed on the Nasdaq Stock Market. PSINet's stock closed on Monday at $3/16, far below its 12-month high of $35.