PSINet to sell European business

NEWS PSINet is to sell off PSINet Europe BV and its subsidiaries for $9.5m. The bankrupt ISP will hand the business over to a group of investors led by Israel Corp. PSINet filed for Chapter 11 bankruptcy protection last May, with assets of $2.2bn and liabilities of $4.3bn. Last week it put all its assets up for sale in an attempt to pay off some of that debt. In the short term the company hopes to raise between $452m and $472m to appease its most demanding creditors. An additional $100m could be recovered from the liquidation of its consulting operation, Metamor Worldwide.