PSINet Europe moves to calm fears

Better late than never

Six days after its US parent filed for Chapter 11 bankruptcy protection, PSINet Europe has finally issued a statement to reassure the industry about its future.

Although last Friday's statement from PSINet Inc. made it clear that Europe, Latin America and Asia were not included in the bankruptcy protection, some customers and industry watchers felt it left a question mark over the future of PSINet's other operations.

What they wanted was a clear and strong signal from PSINet's non-US operations that their future was assured.

The absence of any formal statement for so long has only fuelled the anxiety felt by some.

No matter. PSINet Europe it claims it has "sufficient resources to continue to invest in the growth of the European business".

In a statement Scott Arnell, President of PSINet Europe, said: "Over the coming weeks, we will be refocusing our pan-European business by increasing the asset utilisation of both our Hosting Centres and our fibre network; as well as focusing our resources on what is needed to meet the requirements of our customers. We expect that this strategic review will be completed rapidly and the actions reflecting our conclusions will follow shortly thereafter.

"Financially we believe we are positioned with sufficient resources to invest in the company's future, to grow our customer base and to continue serving our clients. The strong support of our entire European management team and staff has given us great stability, and will enable us to exploit the opportunities and meet the challenges that lie ahead of us. I am confident that, with their support, we will further improve our position in the European market." ®

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