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Excite@Home briefly stopped connecting new customers after it filed for protection under Chapter 11 of the US Bankruptcy Code in September.
The company reached agreements with its largest cable partners - Cox Communications, Comcast and Rogers Cable - to begin Internet service deployment, but those agreements expire on 30 November.
The bankrupt service provider's creditors want to close the company to conserve capital while also looking to for a better offer than the current $307m (£215m) bid from AT&T.
Most of AT&T's 1.35m customers get Internet service through Excite@Home, said an AT&T spokeswoman, who added that Excite@Home's management opposes efforts to shut the network down, as does AT&T.
Excite@Home reported 4.2m residential broadband customers in its third quarter earnings report in November.
AT&T will keep Excite@Home alive if its bid is accepted and approved in another hearing next week in a US federal bankruptcy court. AT&T already holds about 38% ownership in Excite@Home.