Excite goes Ch. 11

Author:
Publish date:

Long-ailing Excite@Home lurched into bankruptcy court Friday, but cut a deal
to sell its high-speed Internet access operation to controlling shareholder
AT&T.

The company was saddled with $1.2 billion in debt at a time when the
advertising business for the portal side of its business dried up.

The company might have $100 million or so in cash on hand.

At press time, the company had not disclosed whether it had secured the
all-important post-petition financing, loans made after the Chapter 11 filing
that puts the lender at the head of the line for repayment but give the company
cash to operate.

AT&T cut a deal to buy pretty much all of the distribution
side of the business for $307 million.

That deal is subject discussions with other possible bidders.

It's not clear on what terms AT&T might seek to service other cable
affiliates, notably Comcast and Cox, but those MSOs have been making contingency
plans for Excite@Home to get into trouble.

Related