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

The already struggling shares of PSINet(PSIX Quote) 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." ...