Tech firm may face bankruptcy

Monday, Aug. 27, 2001 | 11:04 a.m.

REDWOOD CITY, Calif. -- Excite At Home Corp. may be forced into bankruptcy by Promethean Investment Group LLC, which is demanding a $50 million payment before Friday on debt issued in June. At Home disputes the claim.

At Home, an Internet firm facing delisting from the Nasdaq Stock Market and losses exceeding $50 million a quarter, said two funds run by Promethean -- a lender of last resort to several Internet firms -- claim that AT&T Corp.-backed At Home violated a pledge made when they bought the notes.

At Home shares have slumped from a high of $99 in April 1999 as advertising on its sites slowed and it spent more than planned on network expansion. Lawyers and analysts said last week that AT&T may not help its unit stay afloat and may let the company file for bankruptcy protection before it invests more money.

archive