PSINet faces bankruptcy; keeps stadium rights
Internet access provider PSINet Inc. likely will file for bankruptcy, thanks to a cash shortage, and told the SEC it may miss the deadline for filing its 2000 annual report because of rapidly changing circumstances.
It will not, however, sell the naming rights to the stadium of the Baltimore Ravens.
The bankruptcy is intended to help restructure the company's $3.6 billion debt, but observers don't expect the company to pull out of the reorganization, The Washington Times reports.
The company also announced today it finalized its $277 million sale of Transaction Network Services, a data network operator it purchased last year for $720 million.
PSINet agreed to pay the Ravens $105.5 million over 20 years to put its name on the stadium. The Ravens had purchased the naming rights from the Maryland Stadium Authority for $10 million, then sold them to PSINet, the Associated Press reports.
A spokesman told AP the Internet and network provider looks forward to continuing its relationship with the Ravens.