China Cablecom Holdings, Ltd. , a joint-venture provider of cable television services in the People’s Republic of China (“PRC”), has announced that it has been granted a payment extension with respect to $14 million owed to Binzhou Broadcasting until January 31, 2009 while the Company continues to explore its financing opportunities.
On September 2007, China Cablecom entered into a joint venture to operate the cable network in Shandong Province with Binzhou Broadcasting. The asset purchase and service agreements covered a cable network with 411,246 paying subscribers and entitled the Company to a 49% joint venture interest and 60% economic interest in operations, financial positions and cash flows generated by Binzhou Broadcasting for an initial duration term of 20 years. The original contract required completion of payments and full asset transfer by August 2008, which was later extended to December 31, 2008.
The consented payment deadline of January 31, 2009 is subject to further extension granted by the Binzhou SOE and local branches of SARFT.