China Cablecom Completes Placement of $33 Million in Senior Secured Notes and Restructuring of Hubei Assets

China Cablecom Completes Placement of $33 Million in Senior Secured Notes and Restructuring of Hubei Assets

Restructuring significantly improves capital structure

SHANGHAI, Oct. 9 /PRNewswire-FirstCall/ -- China Cablecom Holdings, Ltd. ("China Cablecom" or the "Company") (NASDAQ:CABL) (NASDAQ:CABLW) (NASDAQ: CABLU) , announced the completion of its offering of $33 million in aggregate principal amount of 12% Senior Secured Notes (the "New Notes") due October 2015.

Net proceeds from the sale will be used to satisfy the Company's remaining obligations to the Hubei SOE under its amended framework agreement. Investors in the New Notes have been issued Class B Preferred Stock convertible into 23,158,080 ordinary shares, representing approximately 23.3% of the Company's total outstanding shares after a concurrent debt-for-equity restructuring of its outstanding debt obligations.

"We took advantage of the market opportunity and secured a very critical financing and restructure package," says Pu Yue, Chief Executive Officer of China Cablecom Holdings. "This transaction strengthens our balance sheet by improving our capital structure, retiring a portion of our long term debt, and infusing additional funds to fully secure our Hubei assets. This achievement not only reflects the Company's strong commitment to enhance our shareholder value but also reaffirms our leadership in the rapidly growing industry space, making us one of the top 10 operators in number of subscribers in China's cable television markets. We would like to thank our shareholders and investors for their patience and support during our extended period of negotiations and will now be better positioned for future opportunities to further grow our business."

Chardan Capital Markets was the sole placement agent on this transaction.

The New Notes have not been and will not be registered with the Securities and Exchange Commission and may not be offered or sold in the United States absent such registration or an applicable exemption from such requirements.

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.   www.chinacablecom.net   Debra Chen   Phone: 917.499.8129   Email: debra@chinacablecom.net  

First Call Analyst:
FCMN Contact: debra@chinacableone.net

Source: China Cablecom Holdings, Ltd.

CONTACT: Debra Chen of China Cablecom Holdings, Ltd., +1-917-499-8129,
debra@chinacablecom.net

Web Site: http://www.chinacablecom.net/

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Profile: International Entertainment