China Cablecom Announces Debt Restructuring
09 Outubro 2009 - 10:08AM
PR Newswire (US)
Current footprint operating 28 cable networks with over 1.67
million paying subscribers SHANGHAI, Oct. 9 /PRNewswire-FirstCall/
-- China Cablecom Holdings, Ltd. ("China Cablecom" or the
"Company") (NASDAQ:CABL) (NASDAQ:CABLW) (NASDAQ: CABLU), today
announced the closing of a comprehensive restructuring of its
outstanding debt obligations approved by the Board of Directors,
holders of its debt securities and majority holders of its ordinary
shares. The restructuring strengthens the Company's balance sheet
by reducing the overall principal amount of its long-term debt
obligations and eliminating cash interest obligations on the new
debt securities issued in exchange for its outstanding notes. In
connection with the closing, each debt holder waived any and all
previously existing defaults on the part of the Company. Under the
restructuring package, China Cablecom's existing debt holders
exchanged approximately $47 million in current debt obligations for
an aggregate total of $23.5 million in new secured and unsecured
promissory notes and 65,799,286 newly issued shares of Class A
Preferred Stock, each share of which is convertible at the option
of the holder into one ordinary share, representing approximately
66.2% of the Company's ordinary shares outstanding after the
closing of the restructuring and a concurrent offering of new
senior secured notes. Principal on the new notes is subject to
cancellation in the event that the Company's ordinary shares close
at a daily VWAP greater than $0.85 for 30 consecutive days with
daily dollar volume of 500,000 or more. Chardan Capital Markets
served as adviser to China Cablecom's debt 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.
CONTACT: China Cablecom Holdings, Ltd. Debra Chen Phone:
917.499.8129 Email: http://www.chinacablecom.net/ DATASOURCE: China
Cablecom Holdings, Ltd. CONTACT: China Cablecom Holdings, Ltd.,
Debra Chen, +1-917-499-8129, Web Site:
http://www.chinacablecom.net/
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