-----Original Message-----
From: 	Dorland, Dan  
Sent:	Wednesday, June 13, 2001 7:12 AM
To:	Wilson, Jan; Gaffney, Chris; Borg, Jeff; Ellis, Dave; Dorland, Chris
Subject:	360networks debt-induced downward spiral deepens: closes at 68 cents on TSE



   360networks debt-induced downward spiral deepens: closes at 68 cents on TSE  Canadian Press TORONTO (CP) - Vancouver-based 360networks continued its downward spiral on the stock market Tuesday, as investors knocked another one-third off the telecom network company's valuation. Shares of 360networks closed at 68 cents on the Toronto Stock Exchange, down 32 cents from Monday and less than one-fiftieth of their 52-week high of $35.90.  On the Nasdaq, the shares fell to 45 cents US, increasing the possibility the company could be delisted because of the electronic market's requirement of a $1 minimum share price.  Investors fear 360networks will be unable to meet payments on huge debts accumulated to build a high-speed fibre-optic network that was originally planned to span the globe.  Moody's Investors Service lowered 360network's debt rating last week because of the company's difficulty in securing $300 million needed for debt payments within the next four months. A relatively small payment of $11 million US is reported to be due Friday. "The ambition to build a global network was a huge undertaking, an expensive undertaking," Lawrence Surtees, telecommunications analyst for IDC Canada, said Tuesday. "This is the same company that had been planning to spend $6 billion (Cdn) to expand its network this year." 360networks said May 15 it would slash capital spending in 2001 to between $2.2 billion and $2.4 billion US, down from the previously planned $3.5 billion to $4 billion. The company also halved its revenue forecast to between $1.2 billion and $1.4 billion US. As of March 31, 360networks had $274 million US in cash.