Financially ailing and in debt, overbuilder RCN Corp. has put its Princeton,
N.J., cable system on the block.
A high-income, high-growth pocket fueled by Princeton University, the
80,000-subscriber system is just part of RCN's portfolio of conventional cable systems
that had provided steady cash flow to support RCN's risky overbuilds in New
York, Boston and Chicago.
But a financial crunch forced RCN to renegotiate loan agreements with banks
and is now compelling it to sell some choice assets.
Industry executives who have sniffed said the properties are in need of a rebuild.
Given RCN's financial pinch (stock price: $1.58 per share), the $400 million or so the
properties could fetch should please bankers.