Cash-Poor PSINet Likely to Declare Bankruptcy

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PSINet Inc. is running out of cash and probably will file for bankruptcy, the company said today. The Internet access provider, which also offers Web hosting services for corporations, warned that financial auditors might question the company's ability to operate as a "going concern," according to reports.


The company also said it would not be able to file its 2000 financial report in the required time period.


PSINet, Ashburn, VA, blamed the delay on "rapidly changing circumstances" and said it believed more significant structuring and impairment charges would be posted in the fourth quarter.


The company said that as of March 30 it had about $254 million in cash, cash equivalents, short-term investments and marketable securities.


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