Excite@Home, the leading provider of broadband Internet access, said Friday that it will file for Chapter 11 bankruptcy protection and sell its high-speed network to AT&T for $307 million in cash.
With the filing, Excite@Home becomes the latest Net highflier to seek bankruptcy court protection while it reorganizes its business. Just this week, Exodus Communications, a provider of Web-hosting services to thousands of companies, also filed for bankruptcy.
"This filing is a tool to protect the value of the broadband business for the benefit of the company's financial stakeholders and will help reassure our customers that service will continue uninterrupted through the restructuring process," Patti Hart, Excite@Home chairman and chief executive, said in a statement. "AT&T's offer reflects the value in our network, services, customer base and skilled employees."
As expected, the company filed papers with the U.S. Bankruptcy Court for the Northern District of California on Friday, according to a clerk who declined to provide additional details until the voluminous filing was processed.
The bankruptcy filing is part of a deal with AT&T that calls for Excite@Home to become wholly owned by the long-distance giant by early next year, pending approval by the bankruptcy court.
AT&T has no interest in retaining the Excite portal, so it could be sold to another company, according to a source.
Want to learn more?
http://news.cnet.com/news/0-1004-200-7339605.html
With the filing, Excite@Home becomes the latest Net highflier to seek bankruptcy court protection while it reorganizes its business. Just this week, Exodus Communications, a provider of Web-hosting services to thousands of companies, also filed for bankruptcy.
"This filing is a tool to protect the value of the broadband business for the benefit of the company's financial stakeholders and will help reassure our customers that service will continue uninterrupted through the restructuring process," Patti Hart, Excite@Home chairman and chief executive, said in a statement. "AT&T's offer reflects the value in our network, services, customer base and skilled employees."
As expected, the company filed papers with the U.S. Bankruptcy Court for the Northern District of California on Friday, according to a clerk who declined to provide additional details until the voluminous filing was processed.
The bankruptcy filing is part of a deal with AT&T that calls for Excite@Home to become wholly owned by the long-distance giant by early next year, pending approval by the bankruptcy court.
AT&T has no interest in retaining the Excite portal, so it could be sold to another company, according to a source.
Want to learn more?
http://news.cnet.com/news/0-1004-200-7339605.html
