A committee of Excite@Home Corp.'s largest creditors is reportedly asking a bankruptcy court to force the Internet company to cease service to its cable customers, to improve the value of its assets.
The Wall Street Journal reports that in a filing late Friday with U.S. Bankruptcy Court for the Northern District in San Francisco, the committee said Excite At Home should "refuse to provide service unless the cable companies agree to much better terms or buy the company for a price acceptable to creditors."
Excite@Home filed for bankruptcy-court protection last month. AT&T Corp., a customer and owner of a controlling stake in Excite@Home, said it would bid $307 million for the Redwood City, Calif., company's assets.
Excite@Home stopped accepting new customers from the cable companies two weeks ago, saying it was eating into its dwindling cash reserves. But last week, Excite reached an agreement with the cable providers that they would pay more to Excite@Home in exchange for the ability to accept new customers. Financial terms of that pact weren't disclosed.