PSINet

(PSIX)

was down 13% in preopen

Island

trading after announcing that it hired

Dresdner Kleinwort Wasserstein

to restructure its debt to bondholders and other creditors.

The Internet service provider said even if it succeeds in the debt restructuring, or an alternative, its common shares are likely to have no value. PSINet, whose stock has plunged to under 1 from a 52-week high of 51, also named executive vice president Harry Hobbs as its new president and COO.