PSINet Sells European Operations

PSINet, which is in Chapter 11, sells PSINet Europe B.V. and its subsidiaries to a group of investors led by Israel Corporation.

by Roy Mark of dc.internet.com [April 29, 2002]

Bankrupt backbone carrier PSINet Inc. has entered into a $9.5 million definitive share purchase agreement for the sale of PSINet Europe B.V. and its subsidiaries to a group of investors led by Israel Corporation, a publicly held corporation, and ClearBlue Technologies Holdings Ltd. Because the all cash transaction was structured as a stock purchase, the purchasers also agreed to assume all liabilities and obligations of PSINet Europe.

The share purchase agreement provides that the proposed transaction will be subject to the approval of the U.S. Bankruptcy Court and other customary conditions, including applicable regulatory approvals. As is customary in these situations, the share purchase agreement is the result of a court supervised auction process at which other qualified bidders were entitled to bid for PSINet Europe.

The Ashburn, Va.-based PSINet expects that its operations in Europe will continue to operate in the normal course of business, providing services to its customers. PSINet's operating subsidiaries in Europe are not part of the filing by PSINet Inc. and certain of its U.S. subsidiaries under Chapter 11 of the U.S. Bankruptcy Code.

PSINet Europe provides corporate Internet access and private networks, webhosting, colocation, and managed security, as well as voice, fax, and other audio-video products and applications.

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