Posted on 11/30/2001 1:22:42 PM PST by John Jorsett
A federal bankruptcy court judge in San Francisco today said that the broadband network of Excite@Home will be shutdown on Friday at midnight PST (3:00 AM EST) if a deal with its cable partners and creditors is not reached, sources at the proceedings tell Dotcom Scoop.
Excite@Home has the right under the ruling to renogiate its Master Distribution Agreements with its cable partners and with the approval of creditors, according to published reports. Excite@Home said it is losing $6 million per week keeping the network operational.
Judge Thomas Carlson said he felt that a deal could be reached quickly so that service would not be interrupted. Excite@Home representatives are currently negotiating new operating agreements with cable partners, which creditors must approve, according to the Associated Press.
The decision could affect approximately 4.1 million cable Internet access subscribers using @Home's service through partners such as AT&T, Charter Communications, Comcast and Cox.
If the network is shutdown, AT&T will attempt to migrate customers to its own existing network. Cox is in the process of finishing work on its network, but indications are that customers won't be moved until next year. Comcast is also in the process of building its own network, but there is no timetable for customers to be moved. Both Cox and Comcast have suggested that subscribers use free ISP NetZero as an alternative.
At the heart of the argument was a bondholders motion which asked that the court re-evaluate Excite@Home's broadband assets, which are set to be acquired by AT&T for $307 million. Owed almost $750 million, bondholders contended that the value of the assets is more than AT&T is offering and that fair value could only be known if the network was shutdown and cable partners were forced to find alternative providers. Today's ruling is a clear victory for bondholders.
Dotcom Scoop first reported about the possible shutdown on Nov. 8.
Sniff!
Dear Cox @Home Customer:
As you know from our previous emails, Excite @Home, our vendor in delivering your Cox @Home service, filed for Chapter 11 Bankruptcy protection at the end of September. We have endeavored to keep you informed of the potential impact this Bankruptcy could have on your Cox @Home service and are writing to you today to provide the latest information we have available.
First, we want you to know that we are committed to providing you uninterrupted high speed Internet service. Cox Communications has been working diligently in negotiations with Excite @Home and using all legal avenues available to protect you, our valued customer. Meanwhile, we have been forging ahead with our plans to deliver reliable high speed Internet service to you on our Cox-managed network. You will soon be receiving additional information about our new Cox High Speed Internetsm service, along with information to help you convert to this new service.
The latest developments with Excite @Home:This month, Excite @Home’s creditors petitioned the Bankruptcy court with a motion to allow Excite @Home to terminate service agreements with its cable affiliates on November 30th. This includes agreements with Cox, Comcast and AT&T. If the Court grants the creditors’ request, there conceivably could be a temporary disruption in the services that Excite @Home provides to approximately 3.7 million customers served by its North American cable affiliates. We are doing everything possible to see that there will not be a disruption in your service, but also want you to understand the possibilities and to be prepared:
· If the Judge’s ruling states that Excite @Home may terminate its service agreements with Cox and the other cable affiliates, this does not mean that Excite @Home will automatically turn off the service on November 30th.· With the Judge’s approval, Excite @Home would then have the ability to make a decision on termination; however, we are negotiating with them to prevent any service disruption.· If Excite @Home decides to terminate service despite our efforts to negotiate a temporary arrangement, the question remains as to when the service would be terminated. We are doing everything we can to ensure that your Cox @Home service continues until we can transition you to our new Cox-managed Internet service. In short, we are doing our best to make sure that you will never be without high speed Internet service.
Additional help Cox is providing: In addition to exercising legal avenues, negotiating with Excite @Home, and building our own high speed Internet service, Cox is also offering the following to help you and to keep you informed during this transitional period:
1. Toll Free Customer Information Line (1-877-832-4751). You can call in for the latest updates as we work to quickly resolve any service issues.
2. Website Message Center at www.cox.com/info We will provide online updates and a “Frequently Asked Questions” (FAQ) section to address your concerns.
3. Automatic Account Credits. We will credit your account automatically for service and leased equipment so that you are reimbursed for any time you are without service. 4. Free, temporary dial-up Internet access. In the unlikely event that you should experience a service disruption, we have arranged for temporary dial-up access to the Internet via NetZero®. In order to take advantage of this precautionary option, please see the “What Should I be Doing Right Now” section that follows.
Cox has a long history of outstanding service in your community. We pride ourselves on providing high quality products and the best customer service. Please know that we are committed to our customers and understand the extent to which you enjoy the services we provide. We recognize that you have a choice in service providers and we will continue to do our best to remain your choice now and in the future. In advance, we apologize for any inconvenience that the Bankruptcy of our vendor Excite @Home may cause you.
Stay tuned for more details, and thank you for choosing Cox.
Sincerely,
The Cox High-Speed Internet Team
Cox Communications, Inc.
I waslooking forward to another weekend of FR and online gaming
Yeah, I feel the same way! Just exactly. I'm not addicted to Free Republic...I can quit anytime I want. Seriously! I CAN!
Yep, if AT&T shuts me down, then I'll do the same...DSL and Satellite Dish.
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