T now has a new problem perhaps the E Mail called @home
The @home name is included in the assets T plans to steal. If anyone wants info about how to join in the shareholder lawsuit give me a PM. Every little bit helps.
This article below makes me wonder if ATHM is more the enemy here than T is!
thedeal.com
At Home, creditors spar over AT&T deal
by David Shabelman
Posted 06:00 PM EDT, Nov-9-2001
SAN FRANCISCO — Creditors of At Home Corp. continue to press their case that AT&T Corp. received a sweetheart deal when it bought the Internet company's broadband network in September.
With At Home in bankruptcy court, attorneys for company bondholders are deposing officials with Redwood City, Calif.-based broadband provider and New York-based AT&T to determine, among other things, how the two companies arrived at the $307 million price tag for the network. Attorneys refused to comment on the specific substance of the depositions.
A source close to the companies say the sides clashed when At Home legal counsel objected to an effort by attorneys representing equity holders to attend the deposition of At Home CEO Patti Hart. Bob Garrity, spokesman for a group of roughly 300 At Home shareholders, said attorneys for bondholders invited equity holder lawyers to the deposition, but they were rebuffed by At Home.
Garrity said a motion has been filed with the court requesting that equity holder representatives be allowed to take part in the depositions.
According to one source who has been following the case, bondholders and creditors have advanced their claims that At Home did not get fair-market value for its broadband network. Creditors are fighting the sale because AT&T had voting control of the company at the time of the transaction.
Attorneys for bondholders, who are owed $747 million by At Home, have filed a motion with the Northern District of California bankruptcy court for the company to halt broadband service to At Home's cable customers, which include AT&T, Cox Communications Inc. of Atlanta and Comcast Corp. of Philadelphia. The ploy is an effort to compel At Home to negotiate higher rates from the cable providers for Internet service, which would raise the value of the company's high-speed network.
"There is a physical cost of replacing machinery, plus there's a lot of risk that [At Home's cable customers] are going to lose subscribers to other services," the source said. "You have to take into account all of the losses you'd suffer if you don't get a new contract. If you know your shareholders are going to lose $3 billion in value, for instance, you'd pay a large chunk of money to avoid that loss."
But a banker not involved in the case said the bondholders' stratagem is unlikely to work. Cable companies typically have ironclad contracts that govern such issues as how much notice they must receive prior to termination of Internet service, he said. And even if bondholders persuaded the judge to rule in their favor, cable companies would likely obtain an injunction to continue the service.
According to the source, a more damaging charge for At Home are emerging allegations the Internet company allowed AT&T to review parts of its valuation analysis for the broadband network ahead of their Sept. 28 agreement. This effectively undermined the pricing for the assets, the source said.
At Home bondholders claim the net could command $1.3 billion, which would be enough money to repay creditors.
With bondholders pursuing one tack, At Home's equity owners are developing a restructuring plan for the company they say would allow it to continue operations while meeting its financial obligations.
"We believe it is being manipulated by AT&T and the cable companies so they don't have to share the revenue with At Home," shareholder representative Garrity said. "Our reorganization plan is basically financial, not the operations side. ... The company itself said it was going to be profitable in the first quarter of next year. We're highlighting the financial side of things that it was close to profitability when it filed for bankruptcy."
Garrity said equity holders will file a motion to block the AT&T-At Home deal this month and submit a reorganization plan. Much of At Home's debt is long-term, and if the company were to shut down its money-losing media operations, which include the Excite portal, it could be a viable company, he added.
Under pressure
Bondholders and shareholders of Excite@Home press the bankrupt broadband company to end service to its cable customers.
Company At Home Corp.
(does business as Excite@Home)
CEO Patti Hart
Headquarters Redwood City, Calif.
Date Action
3/29/00 AT&T to boost stake in Excite
6/21/00 Cablevision files suit against AT&T and three other companies to keep AT&T from increasing its stake in Excite
7/18/00 Excite@Home folding its international assets with Netherlands-based Chello Broadband NV
1/08/01 Excite@Home terminates deal to buy Internet game service Pogo.com
3/21/01 Pogo.com seeks damages of $100 million from Excite over failed merger
5/04/01 Excite@Home may sell Excite.com portal
6/06/01 Excite@Home closing operations in France, Germany, Spain and seven smaller European Web sites
6/19/01 Excite@Home says it probably won't sell Excite.com portal, secures $85 million from AT&T
7/23/01 Excite@Home reports second-quarter earnings, says it's in a cash crunch
8/20/01 Ernst & Young questions Excite@Home's ability to continue as a going concern
8/22/01 Excite@Home dismisses Ernst & Young as auditor
8/24/01 Excite@Home receives early repayment demand from lender Promethean Asset Management llc
8/31/01 Cox Communications and Comcast terminate their distribution deals with Excite@Home. Excite hires outside financial adviser.
9/10/01 Excite@Home CFO Mark McEachen resigns
9/13/01 American Greetings buying rival BlueMountain.com for $35 million in cash from Excite@Home
9/14/01 Excite@Home may have gained a little breathing room with its $35 million sale of BlueMountain.com, but prospects remain grim for the cash-starved Internet company
9/25/01 Excite@Home shutters MatchLogic, announces plans to lay off 500 employees over three months
9/28/01 Excite@Home agrees to sell broadband assets to AT&T; files for Chapter 11 bankruptcy protection
10/01/01 With no disclosed terms set, creditors object to deal with AT&T
10/05/01 Creditors ask bankruptcy court to order Excite@Home to release financials and terms of AT&T deal
10/19/01 Attorneys representing bondholders owed money by Excite@Home say they are filing a motion objecting to the sale of Excite@Home's broadband business to AT&T
10/22/01 Excite@Home's bondholders to ask the bankruptcy court to order it to halt service to its cable partners in a move to compel the Internet company to negotiate a higher price for its broadband network
10/24/01 Excite@Home's sale of its broadband network to AT&T is facing additional challenges following an Oct. 24 court hearing. In addition, AT&T removed four executives from the bankrupt high-speed Internet service provider's board of directors and relinquished its rights to replace them.
10/25/01 It may be a little late for AT&T to take action to avoid a conflict of interest in its proposed deal for At Home’s broadband assets
10/30/01 A bankruptcy court judge told creditors and Excite@Home representatives to draw up an order asking At Home to set procedures for considering alternative bids for the company’s assets
11/01/01 Attorneys for creditors opposed to Excite@Home’s sale of its broadband network to AT&T continue to try to convince the court that Excite@Home did not get fair value for its assets
11/02/01 William R. Hearst, a general partner in the venture capital firm that helped form the company, has resigned from the board of directors
11/05/01 Decided in a bankruptcy court session, Excite@Home on Dec. 4 will auction off its broadband and other assets, with a court hearing to consider any resulting sale scheduled the following day
11/09/01 Bondholders and shareholders of Excite@Home want At Home to end its broadband Internet access service
Source: The Deal |
