Apr 26, 2002 : PSINet Europe Sold for $9.5 Million
📅 - Bankrupt ISP PSINet (psinet.ch) said today it had entered into an agreement to sell PSINet Europe to a group of investors for $9.5 million US.
The group is led by led by Israel Corporation, a publicly held company, and ClearBlue Technologies Holdings. Because the transaction was structured as a stock purchase, the investors agreed to assume all liabilities and obligations of PSINet Europe.
Last week, UK tech magazine The Register reported that PSINet Europe executives were already in talks with a number of different suitors regarding potentially acquiring the company. PSINet, its parent firm, recently filed a motion in US bankruptcy court to auction PSINet Europe.
"The proposed transaction will be subject to the approval of the U.S. Bankruptcy Court and other customary conditions, including applicable regulatory approvals," the company said in a release. "As is customary in these situations, the share purchase agreement is the result of a court supervised auction process at which other qualified bidders were entitled to bid for PSINet Europe."
PSINet said it expects its operations in Europe will continue to operate as normal, as PSINet's subsidiaries in Europe were not part of PSINet's bankruptcy filing in June 2001.
Numerous other PSINet subsidiaries have been sold in recent months, including its Canadian assets, which were sold to Telus, a major telecommunications firm, and its Japanese assets, which were sold to Cable & Wireless. Earlier this month, PSINet's American assets were sold to American ISP Cogent Communications for $10 million.
The group is led by led by Israel Corporation, a publicly held company, and ClearBlue Technologies Holdings. Because the transaction was structured as a stock purchase, the investors agreed to assume all liabilities and obligations of PSINet Europe.
Last week, UK tech magazine The Register reported that PSINet Europe executives were already in talks with a number of different suitors regarding potentially acquiring the company. PSINet, its parent firm, recently filed a motion in US bankruptcy court to auction PSINet Europe.
"The proposed transaction will be subject to the approval of the U.S. Bankruptcy Court and other customary conditions, including applicable regulatory approvals," the company said in a release. "As is customary in these situations, the share purchase agreement is the result of a court supervised auction process at which other qualified bidders were entitled to bid for PSINet Europe."
PSINet said it expects its operations in Europe will continue to operate as normal, as PSINet's subsidiaries in Europe were not part of PSINet's bankruptcy filing in June 2001.
Numerous other PSINet subsidiaries have been sold in recent months, including its Canadian assets, which were sold to Telus, a major telecommunications firm, and its Japanese assets, which were sold to Cable & Wireless. Earlier this month, PSINet's American assets were sold to American ISP Cogent Communications for $10 million.
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URL source: http://www.thewhir.com/marketwatch/psi042602.cfm
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