During the past four months, lawyers in Canada and the U.S. have been working toward the closing of the acquisition of the Canadian assets and operations of the PSINet group of companies. While cross-border hearings dealing with asset sales in insolvencies are becoming increasingly commonplace, the stalking horse bid and break-up fee aspects of the transaction involving the Canadian PSINet assets are noteworthy. Published in the October 2001 edition of National Insolvency Review (Vol. 18, No. 5).  Reprinted by permission of LexisNexis Canada Inc., from National Insolvency Review, edited by Justin R. Fogarty, Copyright 2001.