China Cablecom Announces Six Month Payment Extension for Binzhou Broadcasting
05 Janeiro 2010 - 10:15AM
PR Newswire (US)
Renegotiated payment preserves cash liquidity and strengthens
Company's financial position during on-going discussions of
acquiring additional assets SHANGHAI, 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"), announced today that it has entered into
an amended framework agreement pursuant to which it has further
extended its payment deadline to Binzhou Broadcasting until June
30, 2010. Under the revised agreement, the Company is relieved from
its obligation to pay outstanding cash payments of approximately
$16.5 million prior to December 31, 2009 and has renewed the
duration of contract with its Binzhou JV partners. "The extension
of our payment is a strategic move to effectively manage our
resources," says Pu Yue, Chief Executive Officer of China Cablecom.
"The Company underwent a successful restructuring in late 2009 and
raised sizeable capital for the growth of our business. By
prolonging our payment, we are taking a conservative approach to
utilize our cash position and take advantage of our liquidity for
other potential opportunities as we are in discussions to acquire
additional cable asset operations. We believe that this agreement
also demonstrates the confidence of our JV partners and their
cooperation and interest in continuing a long systemic relationship
with China Cablecom." In 2007, China Cablecom entered into an asset
purchase with Binzhou Broadcasting for cable operations covering
the Shandong Province. To date, within the five cable subsidiaries
of Binzhou, the Company has reported operational highlights which
include a total paying subscriber count of 481,186. Digitalization
efforts have begun to increase after the local price bureau
approved the increased ARPU for digital subscription. As of the end
of the third quarter of 2009, digital subscribers were 58,000 and
broadband subscribers were 4,748. 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% 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: Debra Chen (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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