Excite@Home bondholders try to up AT&T’s bid

Excite@Home bondholders are holding out on the sale of the bankrupt ISP’s network assets in hopes of securing a bid higher than AT&T’s current $307 million offer.

@Home had put a hold on provisioning new customers for ten days while it worked out financial problems with its cable customers. However, bondholders Friday filed a motion in federal bankruptcy court, asking it to reject contracts @Home negotiated with its partner cable companies last week. The bondholders are trying to force the cable companies to help pay down @Home’s $1.1 billion in debt or raise the bid for its network assets.

@Home’s bondholders are owed an estimated $750 million, very little of which they will see once @Home’s other creditors divide up the proceeds from any asset sale.

--Kevin Fitchard, staff writer