Excite@Home gets a payment notice.
08/27/2001 9:11:42 AM MDT Albuquerque, Nm
By Dustin D. Brand; Owner AMO
Possible bankruptcy looms for Excite@Home, and Promethean wants it's $50 Million back.
Excite@Home has been trading under $1.00 on Nasdaq since August 16th and is currently at $0.39. Excite@Home faces delisting from the Nasdaq if they remain below $1.00 for 30 consecutive days.
Promethean Investment Group, holders of notes worth $50 million are demanding payments from Excite@Home by the end of the month. Promethean Investment Group, is arguing that Excite@Home breached its commitments related to the notes.
Last time I checked, Excite@Home had $183 million at the end of June. This $50 million payback would certainly place Excite@Home into bankruptcy filings. Aside from this, Excite@Home has currently over $1 Billion in debt.
AT&T, the largest holder of Excite@Home may not bail them out as AT&T is likely to sell their Broadband unit entirely. Comcast, who offered to purchase the AT&T Broadband unit currently uses Excite@Home, as do many Cable ISP's for their Cable internet. Could Comcast save the day?
Don't be surprised if Excite@Home heads to backruptcy court and gives their current holders more weight in getting their $1 Billion back.
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Can Excite@Home survive?