China Cablecom Reports an Additional $736K in Debt Cancellation during Second Round of Equity Conversions
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.
CONTACT:
China Cablecom Holdings, Ltd.
Debra Chen
Phone: 917.499.8129
Email: [email protected]
SOURCE China Cablecom Holdings, Ltd.
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