A San Francisco bankruptcy court will rule whether the broadband service, which has 4m US subscribers, will be shut down due to debts of £706m.
Excite@Home, which has operated under Chapter 11 bankruptcy protection since September, cut 500 staff out of a 2,500 workforce in a cost-cutting exercise. The company is attempting to reach agreements with the cable firms that carry the service to its customers.
Earlier this month, Excite@Home's UK portal Excite admitted that it faced closure. Staff at Excite were warned that unless a buyer was found by December 15 the company would fold. Excite's announcement followed Excite@Home's announcement of £191.5m third-quarter losses and its decision to sell its 58% stake in the UK subsidiary. BT owns the remaining 42% of the company.
Rebecca Miskin, Excite UK managing director, said at the time: "It is unfortunate that the global downturn in media advertising has negatively affected Excite UK's financial performance. Based on this, and the short time period in which to identify a buyer, I have to acknowledge the possibility of the closure of Excite UK."
A spokesman for the company said today that Excite had not yet found a buyer.
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