Financially troubled Internet services company PSINet Inc. announced more executive appointments Thursday, naming John Kraft President and Chief Operating Officer(COO) in the U.S. and R. Scott Arnell President of the European division.
After being delisted from the Nasdaq, cutting jobs, reporting a US$3.2 billion fourth-quarter loss and publicly stating that the company might run out of money, PSINet tapped Harry G. Hobbs as chief executive officer (CEO) last month, in hopes of restructuring the struggling company. Hobbs had been in the position of COO for just over a month when he was promoted to CEO. He replaced William Schrader, who stepped down from his position as CEO, but remains as a board member.
PSINet shares were trading over the counter for $0.10 per share Thursday afternoon, up half a cent from its opening price. Over-the-counter trading offers a market for so-called "penny stocks," which are selling at low prices.
Kraft is no stranger to PSINet -- between 1996 and 1999 he held positions including vice president of carrier and ISP (Internet service provider) services, as well as president of the Northeast region, PSINet said in a statement.
Arnell will be based in Geneva and will be responsible for PSINet operations in Europe, including hosting centers in London, Amsterdam, Paris, Geneva and Berlin, the company said.
Both Kraft and Arnell will answer directly to Hobbs, the company said.