Beleaguered broadband service provider and portal At Home, best known for its Excite@Home brand, has been hit with yet another potentially fatal blow, announcing Monday that two holders of the company's Convertible Notes are demanding payment of US$50 million on those notes by the end of this week.
Excite@Home received a letter from Promethean Investment Group LLC, which manages two investment funds that hold Convertible Notes issued by the broadband provider, saying that the company breached certain representations made when the notes were issued, Excite@Home said Monday. Promethean is demanding payment on the notes by Friday.
Although Excite@Home said that it is disputing the claim, if the company were held responsible for the payment at this time, "it would have a materially adverse impact on the company's liquidity and ability to fund its operations," the company said in a statement.
This latest development comes after the company was forced to lay off another 200 people amid market woes and as Excite@Home's stock continues to dip below the price it needs to maintain in order to avoid being delisted from the Nasdaq.
Shares of At Home Corp. (ATHM) plummeted another 22 percent in morning trading Monday to US$0.39 upon announcement of the payment demand.
No one from Excite@Home or Promethean was immediately available to comment Monday morning.