PSINet Inc., an Internet services provider based in Ashburn, VA, has filed for Chapter 11 bankruptcy protection along with 24 of its U.S. operating subsidiaries.
The company¹s four Canadian subsidiaries also have filed for protection under that country¹s laws.
The firm said it expects all of its subsidiaries will continue to provide reliable service to customers. At the time of the filing, the companies involved in the filings had approximately $300 million of unrestricted cash, cash equivalents, short-term investments and marketable securities on hand.
Meantime, PSINet has signed a letter of intent with Canadian telecommunications firm Telus to purchase PSINet’s Canadian operations and facilities. The proposed purchase is subject to regulatory and bankruptcy-related approvals.
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