BEIJING, April 14, 2010 (GLOBE NEWSWIRE) — China Networks International
Holdings Ltd. (“China Networks” or the “Company”) (Pink Sheets:CNWHF), a
television advertising operator based in China, announced today the completion
of a $25.5 million debt restructuring. China Networks offers domestic and
international advertisers access to viewers and stations across its member
network throughout China.
In connection with the restructuring transaction, the holders of an aggregate of
$25.5 million in senior secured debentures of China Networks Media, Ltd., the
Company’s wholly-owned subsidiary, agreed to cancel the debentures in exchange
for 23 million common shares and 16 million preferred shares of China Networks.
Upon completion of restructuring, the outstanding capital of the Company will
consist of 41,019,993 common shares, 16,000,000 preferred shares and a total
debt of $11 million.
“It has been a pleasure working with our Kunming joint venture partners and the
respective local branches of the Chinese State Administration for Radio, Film
and Television,” says Kerry Propper, Board of Directors at China Networks. “The
execution of the restructuring marks a historical transaction for China Networks
and the overall media and television advertising industry in China. We completed
an ambitious corporate and debt restructuring plan so that we may now focus the
Company’s efforts on developing our business offerings. Through the series of
negotiations, we successfully secured a long-term partnership with Kunming SARFT
and are excited about the future of the business. Going forward, we will offer a
platform to our domestic and international advertising clients and enjoy high
profitability margins and strong organic growth on this and other future
television network collaborations.”
Chardan Capital Markets served as sole adviser on the restructuring.
About China Networks
China Networks International Holdings, Ltd., is a media advertising company
focusing on providing international and domestic advertising to its exclusive
networks in tier two and tier three cities in China., Currently the Company owns
and operates a 50% interest in the Kunming Taishi Information Cartoon Co., Ltd.
(Kunming) and Shanxi Yellow River & Advertising Networks Cartoon Technology Co.,
Ltd (Yellow River) Joint Ventures. Combined, Kunming and Yellow River represent
coverage of 7 television channels and 1 radio station covering 36 million
people. China Networks along with its joint venture partners seeks to add more
television stations to its advertising network. For more information about China
Networks, visit www.chinanetworks.com.
The China Networks International Holdings Ltd. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=7329
Safe Harbor Statement
This press release may include certain statements that are not descriptions of
historical facts, but are forward-looking statements. Such statements include,
among others, those concerning our assumptions, expectations, predictions,
intentions or beliefs about future events. Forward-looking statements can be
identified by the use of forward-looking terminology such as “will,” “believes,”
“expects” or similar expressions. Such information is based upon expectations of
our management that were reasonable when made but may prove to be incorrect. All
of such assumptions are inherently subject to uncertainties and contingencies
beyond our control and based upon premises with respect to future business
decisions, which are subject to change. We do not undertake to update the
forward-looking statements contained in this press release. For a description of
the risks and uncertainties that may cause actual results to differ from the
forward-looking statements contained in this press release, see our most recent
Annual Report on Form 10-K filed with the Securities and Exchange Commission
(“SEC”), and our subsequent SEC filings. Copies of filings made with the SEC are
available through the SEC’s electronic data gathering analysis retrieval system
at http://www.sec.gov.
CONTACT: Icon Media Communications
Investor and Media Contact:
Debra Chen
+ 917-499-8129
debra@imc-ir.com