The federal bankruptcy court judge presiding over Excite@Home Corp.'s
Chapter 11 proceedings said he was doubtful that the $307 million bid from
AT&T Corp. for the company's assets will fly given strong bondholder
Judge Thomas Carlson said
Wednesday that the bondholders, who represent more than $750 million in Excite@Home debt,
could well scuttle the sale.
He noted unless the creditors believe the AT&T bid is beneficial, he
would have a hard time approving the sale.
And the bondholders are far from
Last week, the bondholders' committee filed a motion in bankruptcy court
demanding that the Excite@Home network be shut down until affiliate cable
operators agree to pay more for the service.
The motion, set for a Nov. 15
hearing, argues that the cable operators should be made to sign new service contracts at
The bondholders hope this, in turn, will increase the value of the company
and lure better offers for its assets.
Their target asking price for Excite@Home's assets now stands at more than $1
To that end, the bondholders are asking for
correspondence, electronic mails or draft documents related to how AT&T and
Excite@Home came up with the $307 million bid figure, as well as depositions
from top AT&T executives including chairman and CEO C. Michael Armstrong.