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To: The Freep who wrote (77733)	6/1/2001 12:36:37 PM
From: puborectalis	Respond to of 99985

PSINet files Chapter 11 Troubled Internet service provider says liabilities nearly double assets June 1, 2001: 11:51 a.m. ET NEW YORK (CNNfn) - Struggling Internet service provider PSINet Inc. said Friday it has filed for Chapter 11 bankruptcy protection as its total liabilities nearly doubled its total assets. PSINet had said in April that it was likely to file for bankruptcy because of a cash shortage. At the time of the filing, the Ashburn, Va.-based company had total assets of $2.2 billion and total liabilities of $4.3 billion, of which $2.9 billion is bond debt. When a company files for protection under Chapter 11, it is protected from creditors while it tries to reorganize its business and work out a plan to pay its debts. The company said its filing with the U.S. Bankruptcy Court in New York also covers 24 of its operating subsidiaries in the U.S., while four Canadian subsidiaries also have filed for protection in the Ontario Superior Court of Justice. PSINet said the move will not affect its service to customers, and the company will focus on restructuring efforts. "Our existing capital structure did not permit us to respond to the rapid changes in our markets. We expect that the steps we are taking today will provide us with the flexibility and time to explore all strategic alternatives while we continue to deliver the reliable service upon which our customers depend," PSINet President and CEO Harry G. Hobbs said. --------------------------------------------------------------------------------

To: The Freep who wrote (77733)	6/1/2001 12:49:37 PM
From: Jack of All Trades	Respond to of 99985

Just talked with a customer who's biggest customer is Symbol, and rumor is another cut coming. The people left have no idea what other people were working on, it's a mess... So I would guess there are similar stories in techland, I don't see much work being handed out until things are under control...

To: The Freep who wrote (77733)	6/1/2001 3:28:16 PM
From: t2	Respond to of 99985

Freep, I think that article you posted on the slowing of technology spending has some positive elements as well. ``This run-up in tech stocks has been premature,'' Yardeni said. ``We've had a rally based on the belief that `it's-so-bad-it-can't-get-any-worse'.'' In one piece of good news, the poll debunks the notion that corporations aren't buying because they have bought too much technology already. Only 21 percent of the CIOs polled said that they had sufficient capacity in technology. About 63 percent said the biggest reason not to buy tech goods was either weak profits or tight financial conditions. In other words, corporations should resume their buying, once the economy turns around and their profits and finances improve. This means, Yardeni says, that the downturn in tech spending is a short-term, not a long-term, trend. There is a catalyst on the horizon for technology spending by corporations and consumer spending as well. That is Windows XP that gets launched beginning of November. I would note that spending on PCs slows down ahead of major Windows launches. We should start getting comments like that from the PC vendors...in the meantime, they are getting lean! Even the Office XP release of this week will impact MSFT earnings when Windows XP is released. That is one reason many corporations like to wait on PC type of purchases. There is really no reason to buy a Pentium 4...yet. There is some negative IDC PC demand research that is on the way...but it seems to be anticipated by the market. There were negative points in that article but I believe that the positive elements will get played out in the near term. My bet is that the tech spending will come back late this year. Just not sure how long the telecommunication spending remains low...less confidence on that segment. Will look at the article on the weekend again.

To: The Freep who wrote (77733)	6/1/2001 3:38:52 PM
From: David Howe	Respond to of 99985

<< any comments on this article? >> Yes. I think the portion of the article below is important. You don't value tech stocks entirely on a temporary dip in demand (slower growth in some cases), you need to take into account the long term growth and sales potential of these companies. IMO, Dave << In one piece of good news, the poll debunks the notion that corporations aren't buying because they have bought too much technology already. Only 21 percent of the CIOs polled said that they had sufficient capacity in technology. About 63 percent said the biggest reason not to buy tech goods was either weak profits or tight financial conditions. In other words, corporations should resume their buying, once the economy turns around and their profits and finances improve. This means, Yardeni says, that the downturn in tech spending is a short-term, not a long-term, trend. >>