SHENZHEN, China , Dec. 3 /PRNewswire-Asia/ -- China Security & Surveillance
Technology, Inc. (NYSE: CSR; DIFX: CSR) ("CSR"), a leading provider of digital
surveillance technology in China , today announced that as a follow up to the
press release issued on November 18, 2008 , Whitehorse Technology Limited, a
company wholly owned by Mr. Tu Guo Shen , Chief Executive Officer of CSR,
signed an agreement with third party noteholders that are not affiliated with
CSR to restructure the payment terms of U.S.
The restructured Notes require ten installment payments in varying amounts during the period from November 2008 through June 2009 . Shares pledged by Whitehorse and Mr. Tu to collateralize the Notes will be released by the trustee for the Notes as installment payments are made as long as the requisite collateral to loan value is maintained. With each paid installment, shares will be returned to Whitehorse at the equivalent of three times the installment amount paid. During the repayment period, no further shares will be pledged regardless of current or future share price fluctuations. In addition, the noteholders agreed to refrain from declaring an event of default with respect to the Notes and to refrain from instructing the collateral agent to dispose of the pledged shares as a result of Whitehorse or Mr. Tu's failure to pledge additional collateral according to the terms of the original indenture and security agreement so long as the installment payments are made when due.
Mr. Tu, commented, "Restructuring the terms of the notes and obtaining the forbearance agreement as we did should provide CSR's shareholders with increased confidence. I have the personal financial ability to repay the loan in accordance with the restructured amortization schedule without any need to sell any of my CSR stock.
The intent of this original loan was to repurchase shares of CSR to demonstrate my commitment to CSR and express my belief that CSR's recent share price levels undervalue the company. The Notes were issued by Whitehorse and secured by my own holdings of CSR common stock. They did not result in any dilution of shares of common stock held by other CSR stockholders, interest on the Notes was paid by Whitehorse and CSR's net income was not affected in any way by my open market share purchase transactions."
CSR was not a party to any of the indenture and security agreements or any related agreements and did not make any representations, warranties or covenants in connection with the issuance of the Notes or any amendments to the Notes or other transaction documents.
About China Security & Surveillance Technology, Inc.
Based in Shenzhen, China , CSR manufactures, distributes, installs and services security and surveillance products and systems as well as develops security and surveillance related software in China . Its customers are mainly comprised of commercial and government entities and non-profit organizations. CSR has built a diversified customer base through its extensive sales and service network that includes over 150 branch offices and distribution points throughout China . To learn more about CSR visit http://www.csst.com .
Safe Harbor Statement
This press release includes certain statements that are not descriptions of historical facts, but are forward-looking statements. 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 upon assumptions 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 filed with the Securities and Exchange Commission (SEC) on Form 10-K, and our subsequent SEC filings. Copies of filings made with the SEC are available through the SEC's electronic data gathering analysis retrieval system (EDGAR) at http://www.sec.gov .
SOURCE China Security & Surveillance Technology, Inc.