China Cablecom Reports an Additional $736K in Debt Cancellation during Second Round of Equity Conversions
06 January 2010 - 3:15AM
PR Newswire (US)
Cumulatively $1.3M in principal debt reduced as debt holders
continue to convert Series A Preferred Shares SHANGHAI, China, Jan.
5 /PRNewswire-FirstCall/ -- China Cablecom Holdings, Ltd. ("China
Cablecom" or the "Company") (NASDAQ:CABL) (NASDAQ:CABLW)
(NASDAQ:CABLU), a joint-venture provider of cable television
services in the People's Republic of China (PRC), is pleased to
report a further reduction of approximately $736,000 in its
outstanding debt, resulting from the conversion of approximately
2.06 million of the Company's Series A Preferred Shares into
Ordinary Shares. "The equity conversions from our investors have
enabled us to eliminate debt from our balance sheet and strengthen
our financial position, allowing for greater flexibility to
capitalize on strategic and financial opportunities in 2010," says
Clive Ng, Founder & Executive Chairman of China Cablecom. "We
believe our capital structure is well-position to support the
significant growth as a result. We continue to operate through a
rapidly growing revenue stream and an organically growing
subscriber base managed by our skilled management team." The terms
of the Junior Secured Notes provide that during the 14 months
following the closing of the restructuring, the principal amount of
a Junior Secured Note is automatically reduced upon its holder's
conversion of any Series A Preferred Shares issued to that
noteholder in the restructuring. About China Cablecom China
Cablecom is a joint-venture provider of cable television services
in the People's Republic of China, operating in partnership with a
local state-owned enterprise ("SOE") authorized by the PRC
government to control the distribution of cable TV services through
the deployment of analog and digital cable services. China Cablecom
has consummated the acquisition of a 55 percent economic interest
in a cable network in Hubei province with paying subscribers
exceeding 1,100,000. The Company originally acquired operating
rights of the Binzhou Broadcasting network in Binzhou, Shandong
Province in September 2007 by entering into a series of asset
purchase and services agreements with a company organized by SOEs,
owned directly or indirectly by local branches of State
Administration of Radio, Film and Television in five different
municipalities to serve as a holding company of the relevant
businesses. China Cablecom now operates 28 cable networks with over
1.67 million paying subscribers. China Cablecom's strategy is to
replicate the acquisitions by operating partnership models in other
municipalities and provinces in the PRC and then introducing
operating efficiencies and increasing service offerings in the
networks in which it operates. Safe Harbor Statement The matters
discussed in this press release contain "forward-looking
statements" as defined in the Private Securities Litigation Reform
Act of 1995. Forward-looking statements contained in this
presentation and in the Company's other written and oral reports
are based on current Company expectations and are subject to
numerous risks, uncertainties and assumptions, Any forward-looking
statements are not guarantees of future performance and actual
results of operations, financial condition and liquidity.. The
forward-looking statements herein speak only as of the date stated
herein and might not occur or the actual results may differ
materially in light of these risks, uncertainties, and assumptions.
The Company undertakes no obligation and disclaims any obligation
to publicly update or revise any forward-looking statements,
whether as a result of new information, future events, or
otherwise. You should carefully consider these factors, as well as
the additional risk factors outlined in the filings that the
Company makes with the U.S. Securities and Exchange Commission,
including the Annual Report on Form 20-F filed on July 15, 2009.
China Cablecom Holdings, Ltd. http://www.chinacablecom.net/
CONTACT: China Cablecom Holdings, Ltd. Debra Chen Phone:
917.499.8129 Email: DATASOURCE: China Cablecom Holdings, Ltd.
CONTACT: Debra Chen, China Cablecom Holdings, Ltd.,
+1-917-499-8129, Web Site: http://www.chinacablecom.net/
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