The company was delisted from the Nasdaq exchange last week after announcing job cuts and a fourth-quarter loss of $3.2bn, and after warning that it did not have enough money to continue operating. The possibility of selling all or part of the company is being considered, as are alternatives for restructuring its debts. However, even if these measures are implemented, it is still possible PSINet will run out of money, the company statement reiterated.
PSINet also announced that it has named Lawrence Hyatt as chief restructuring officer. That duty is added to Hyatt's tasks as executive vice president and chief financial officer. He will work closely with bondholders and other creditors to put the company on a sounder financial footing.
Hobbs will also focus on that goal. He previously served as the company's president and chief operating officer and has worked in recent months to streamline operations, the statement said. His new duties will involve creating and implementing a business plan to take the company through its restructuring, PSINet said. He has also been appointed to the company's board of directors.
Besides Hobbs and Hyatt, Kathleen Horne, executive vice president and general counsel, will also work closely on the restructuring.
PSINet added that Ian Sharp has been named chairman of the board of directors. He takes over from William Schrader, who had been chairman and CEO.