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RE: PSINet Files Chapter 11...
- From: Forrest Houston
- Date: Fri Jun 01 15:37:51 2001
DOH! Guess I missed the memo about nanog-post, no wonder nothing has been
getting through lately ;)
Anyway, I've been w/ PSInet for about 3-4 years now and I've never really
had a problem with them. In fact when I was looking for a replacement the
most recent "who's the best" survey of ISPs that I found had PSInet on top
as far as service. I hate to see them go, and I have a feeling it's going
to be self-fulfilling prophecy as people bail out on them because of all
the negative news.
BTW here's the memo they sent out to customers earlier today, it's pretty
much the same as the press/new articles though:
June 1, 2001
Dear PSINet Customer:
As you know, the Internet business has undergone a tremendous
transformation over the past year, and we - like others in our industry -
face a dramatically altered landscape. With that in mind, I am writing to
share with you today some important news about our company. PSINet
voluntarily filed for protection under Chapter 11 of the U.S. Bankruptcy
Code, and the Company's Canadian subsidiaries filed for protection under
similar statutes in Canada called CCAA.
How does this transaction impact our relationship with you? Not at all.
We intend to continue operations without interruption in all PSINet
facilities [in the U.S., Canada, Europe, Asia and Latin America] and
customers can continue to rely on the systems and networks they have
developed in conjunction with PSINet. Employees will continue to work,
and vendors and suppliers will be paid in full in a timely manner for
goods and services delivered after the filing date.
We have asked the court for continued use of cash and cash collateral to
fund operations during the restructuring process. At the time of the
filing, we had approximately $300 million in cash, cash equivalents,
short-term investments and marketable securities on hand. We have received
offers for debtor-in-possession (DIP) financing, but declined to obtain
financing at this time. We believe that PSINet's cash and cash equivalents
will help to ensure that the Company and its operations have more than
adequate funds to meet ongoing needs.
It goes without saying that your continued support is important to the
success of our future. I have included the URL of our news release for
your information, http://www.psinet.com/news/pr/01/june1.html I will
continue to keep you informed as we move through this process. In the
meantime, please call your PSINet account manager with any questions that
you may have.
Harry G. Hobbs
President and CEO
On Fri, 1 Jun 2001, Los, Ralph wrote:
> OK, I have to say, in their defense...what little
> technology/engineering they DO have, have been very solid on the T-1 we have
> from them. I've had only a single problem about a week ago when one of
> their routers stopped announcing a route Herndon-->Chicago (oops), and we've
> had that T-1 in for over 7 months now.
> They are doomed, yes, but they do have a decent engineering staff.
> Ralph M. Los
> Asst. Vice-President, Internet Systems and Security
> EnvestNet Advisory Corp.
> (312) 827-3945 (direct)
> (312) 296-9003 (wireless w/voicemail)