SOURCE: China Cablecom Holdings Ltd
SHANGHAI, CHINA--(Marketwire - Jul 25, 2012) - China Cablecom Holdings, Ltd. ("China Cablecom" or the "Company") (OTCBB: CABLF), is pleased to announce that its Board of Directors has approved the use of proceeds received to date from the sale of its Hubei assets to partially redeem its currently outstanding senior secured notes due 2016. The Company intends to apply approximately $11.5 million of such proceeds towards a partial redemption of the $19.1 million of notes outstanding, subject to receipt of related waivers from the majority in interest of holders of the senior secured notes. Interest payments on the senior secured notes have been deferred in accordance with their terms as a result of the prior redemption of $13.9 million of the senior secured notes in October 2009, and upon the earlier of the redemption of all outstanding principal amount of senior secured notes and October 9, 2012, deferred and accrued but unpaid interest will become payable in cash. The redemption is expected to take place following the receipt of the noteholder waivers or ten business days after noteholders have received formal notice thereof, whichever is later.
On April 4th, 2012, China Cablecom announced the sale of its Hubei assets with its joint venture partner Hubei Chutian Radio & Television Information Network Company Limited. In accordance to the terms of the agreement, the Company signed a JV Termination Agreement with Hubei Chutian Shi Xun Network Company Limited ("Hubei JV").
The Company plans to continue allocating remaining proceeds of the Hubei sale to reduce its outstanding debt and any excess proceeds will be used to increase shareholder value going forward.
About China Cablecom
China Cablecom was 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 formerly operated 28 cable networks with over 1.67 million paying subscribers.
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 28, 2011.