Two investors in ailing Excite@Home are demanding the return of part of the $100 million it lent the company, contending that the company didn't fully disclose how weak its financial condition has become.
Two funds controlled by vulture investor Promethean Asset Management injected some badly-needed cash into Excite in June, buying five-year notes convertible into common stock. Promethean contends that Excite's condition was more desparate than the company let on and wants $50 million back by Friday.
An Excite executive disputed that Promethean is entitled to an immediate return of its cash, saying that no secrets were kept. Excite, however, could be obligated to return all the Promethean cash if its stock gets delisted by NASDAQ, which is a distinct risk. - John M. Higgins