Excite@Home on Brink of Bankruptcy as Investor Calls-in $50m Loan

28 August 2001

All but the last barricade has fallen at beleaguered ISP Excite@Home – and that is set to topple on Friday when investor Promethean Asset Management LLC is due repayment of half its $100 million loan.

Controlling shareholder AT&T has already written-off over $3 billion of its investment in Excite and few believe it will part with a penny more. In particular, it is said to be angered by Excite’s plan to file for bankruptcy protection [WAMN: 21-Aug-01].

In demanding early repayment, Promethean alleges that Excite made certain misrepresentation at the time the loan was sought – a charge refuted by Excite: “Their allegations have no merit. We are in talks with Promethean to work out the issues,” said an Excite spoke.

The latest crisis is one of a series to beset the reeling ISP in recent weeks. Earlier this month its auditor Ernst & Young publicly proclaimed “substantial doubt” that Excite could survive as a going concern – a pronouncement that promptly led to the termination of its audit services.

News source: Wall Street Journal