Going to Zero? PSINet Says Common Stock May Soon Be Worthless

The already struggling shares of PSINet(PSIX) plunged more than 70% as the company made a host of announcements Monday, including the appointment of a new president and operating chief, the sale of one of its units, and the disclosure that its common stock may soon be worth nothing.

The e-commerce infrastructure company said it hired Dresdner Kleinwort Wasserstein as a financial adviser to explore the possible restructuring of its obligations to bondholders and creditors. The company said "even if PSINet is successful in one or both of these efforts, it is likely that the common stock of the company will have no value, and the indebtedness of the company will be worth significantly less than face value."

Shares of PISNet, which is based in Ashburn, Va., plummeted 53 cents, or 73.9%, to 19 cents in recent Nasdaq trading, after reaching a bottom of 13 cents earlier in the session. The 52-week high is $51.

The company also said it named Harry G. Hobbs, 47, its new president and operating chief. Hobbs previously served as an executive vice president and divisional president of PSINet's international operations, where he was responsible for Latin America, Europe and the Asia-Pacific region.

James F. Cragg, executive vice president and divisional president, resigned from the company. His primary responsibility was North American operations.

And to wrap up the news, the company said its Metamor Holdings unit reached a deal to sell its Decan Groupe information communication and technology division to Getronics International. Metamor Holdings owns more than 98% of the shares outstanding of Decan Groupe and more than 99% of its convertible bonds.

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