China Cablecom Provides Update on Notice of Default
May 11 2009 - 8:00AM
PR Newswire (US)
SHANGHAI, May 11 /PRNewswire-FirstCall/ -- China Cablecom Holdings,
Ltd. ("China Cablecom" or the "Company") (NASDAQ:CABL)
(NASDAQ:CABLW) (NASDAQ: CABLU), issued a status update regarding a
previously announced notice of default received from one of the
lenders to its subsidiary, China Cablecom Limited (the "Borrower"),
relating to principle and interest obligations of approximately
$2.2 million due on April 19, 2009. Based on the fact upon the
above due date, the Company sought tolling agreements from all of
the holders of the promissory notes issued in connection with the
$20.0 million bridge financing that preceded the Company's merger
with Jaguar Acquisition Corporation that funds consisting of
outstanding principal amount together with any unpaid and accrued
interest (aggregating to approximately $11.0 million on the due
date, including the approximate $2.2 million owed to the lender
mentioned above), had been made available in a separate fund during
the process of arranging for the conversion of Renminbi in China.
While most lenders provided such tolling agreements, they were only
effective until April 30, 2009 and as of today, the full amount of
principal, interest and penalty provisions are now due and payable.
During the course of discussions with the holders of these
promissory notes, on the other hand, such holders expressed to the
Company a strong preference to have the Company restructure its
debt obligations of its joint venture partners with the Hubei
state-owned enterprise in order to better reflect the current
economic environment and the anticipated cash flows of the
Company's cable television business. Accordingly, as of the date
hereof none of such lenders have commenced action against the
Borrower, based in part on the expectation that a comprehensive
debt restructuring package will be proposed for their approval in
the coming weeks. 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. In June 2008,
China Cablecom consummated an agreement to acquire a 60 percent
economic interest in a cable network in Hubei province with paying
subscribers exceeding 800,000. 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
1.4 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 Registration Statement on Form S-1 filed on April 18,
2008. CONTACT: China Cablecom Holdings, Ltd. Debra Chen Phone:
917.499.8129 Email: DATASOURCE: China Cablecom Holdings, Ltd.
CONTACT: Debra Chen of China Cablecom Holdings, Ltd.,
+1-917-499-8129, Web Site: http://www.chinacablecom.net/
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