More on Excite@Home

We posted a brief story on Friday about a court motion filed by Excite@Home bondholders who are trying to get their debts paid back, unhappy with the $307 million sale to AT&T. CNet now has some more details on the court motion. The bondholders want Excite@Home to reject all its current cable contract, and renegotiate better contracts, or find a company which will actually pay all the creditors of Excite@Home. Of course it's not exactly easy to find a company that's willing to pay $750 million in outstanding debt in addition to paying to acquire the network. That's why its likely AT&T will still end up with @Home.

The source said the most likely outcome is that AT&T will estimate how much extended litigation would cost and will settle somewhere in the middle, if at all. In any case, AT&T has all the leverage. "After all, it's not like anyone is coming in to give a better deal to Excite@Home bondholders," the source said.