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Excite creditors want more
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October 22, 2001: 2:57 p.m. ET
ISP's bondholders press issue by asking court to shut down service.
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NEW YORK (CNNmoney) - A committee of Excite At Home Corp.'s bondholders is attempting to get a higher price for the Internet service provider's assets by asking a court to shut down its service.
High-speed Internet service provider Excite At Home filed for bankruptcy court protection last month. New York-based AT&T Corp., which holds a 23 percent stake in Excite and has a 74 percent voting stake, has bid $370 million for the company's assets.
Comcast Corp. and Cox Communications Inc., along with Excite, have pledged to provide uninterrupted service. In August, Comcast (CMCSK: up $0.72 to $36.16, Research, Estimates) and Cox (COX: up $1.27 to $39.40, Research, Estimates) each said they wouldn't renew their contracts. But last week Excite said it reached a deal with both Cox and Comcast to take on new subscribers while it is in bankruptcy.
AT&T's bid does not come close to paying off Excite's debt, according to attorney Martin Bienenstock of the law firm Weil Gotshal & Manges, which represents the bondholders.
"By requesting that service be shut down, the bondholders are attempting to require [the cable companies] to value Excite At Home in terms of not only what the assets are worth, but what the cost is to the cable companies if they can no longer provide the company's service," he said.
AT&T's offer could leave bondholders with as little as 5 cents on the dollar, the Wall Street Journal reported Monday. Excite's bondholders have about $747 million of claims.
Excite's creditors and the company asked AT&T to pay more than $1 billion for Excite's assets.
Both AT&T (T: up $0.53 to $18.28, Research, Estimates) and Redwood City, Calif.-based Excite declined to comment. 
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