PSINet CEO sells shares to cover loan

The head of troubled backbone provider PSINet has had to sell millions of his company's shares to cover a margin call.

PSINet (psix) said Thursday that chairman and CEO William L. Schrader was forced to sell 11.4 million shares used to secure a bank loan. A margin call requires an investor to put up cash or securities to back the stock bought with borrowed funds. Schrader is the second CEO of a high profile communications company caught in a margin call in the last couple of months. MCI Worldcom (wcom) CEO Bernard Ebbers recently sold 3 million Worldcom shares to cover a call. Full story. -- Sergio G. Non, ZDNet Inter@ctive Investor