CDC buys back $1 million of its 3.75% senior exchangeable convertibles

By Devika Patel

Knoxville, Tenn., Dec. 7 - CDC Corp. said it bought back $1 million of its 3.75% senior exchangeable convertible notes due 2011 from a single investor.

To date, the company has come to terms with all 11 original investors to repurchase, at average prices below par, $126.78 million in notes. The principal amount of notes outstanding is $166 million.

"We are very pleased to have reached an agreement to repurchase notes from an original purchaser and holder of our notes," chief executive officer Peter Yip said in a press release. "We have now reached amicable agreements with all 11 of our original purchasers for all or part of their respective holdings. We hope to continue to work with our final original purchaser that still holds a remaining position to reach a resolution to our disagreement."

As previously reported, the company believes the put option originally granted to the noteholders is no longer exercisable following an amendment made to the convertibles.

CDC is a Hong Kong and Atlanta-based enterprise software and new media company.

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