Troubled Excite@Home Corp. said Monday that two holders of about $50 million
worth of convertible notes have demanded payment by the end of the week.
According to a press release, Excite@Home said two units of Promethean
Investment Group LLC have demanded payment of the notes on or before Aug. 31,
claiming that the high-speed Internet-service provider breached certain
representations made when the notes were first issued June 8. That deal was part
of a $100 million convertible note transaction with Promethean.
In the press release, Excite@Home disputed Promethean's claims, adding that
being forced to pay the notes would have a 'materially adverse impact on the
company's liquidity and its ability to fund its operations.'
Excite@Home ran into trouble last week when its auditors -- since dismissed
-- raised doubt about its ability to continue as a going concern, mainly because
of the Promethean debt.
According to the agreement with Promethean, Excite@Home would have to pay the
entire $100 million in cash if its stock was delisted from the NASDAQ National
Market System.
At under 50 cents per share, Excite@Home stock is currently below the
$3-per-share minimum NASDAQ requirement. However, it has not yet received a
delisting notice from the exchange.
Excite stock fell 10 cents per share to 40 cents each in early trading
Monday.
