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Court imposes $65.4 million judgment against CDC; sales prohibited
By Caroline Salls
Pittsburgh, Sept. 16 - CDC Software Corp. parent CDC Corp. is prohibited from completing any sale transactions in connection with a Supreme Court of the State of New York ruling granting Evolution CDC SPV Ltd., Evolution Master Fund Ltd., SPC, Segregated Portfolio M and E1 Fund Ltd. $65.4 million of claims against CDC, according to a 6-K filed with the Securities and Exchange Commission.
As previously reported, the court orally granted Evolution's motion in July to prevent CDC from transferring or disposing of assets before the court entered its final judgment in the Evolution v. CDC Corp. lawsuit.
CDC subsequently filed a motion asking the court to clarify that order and/or modify it to allow CDC to move forward with various pre-planned transactions to obtain the cash needed to either pay Evolution or post a bond to supersede the final judgment if CDC elects to appeal.
CDC's modification motion was denied on Sept. 1.
In addition to ruling in favor of Evolution on its $65.4 million in claims, the court said interest will accrue at 18% until the judgment is paid in full.
The company also cannot complete any sale except upon direction of the sheriff or under a court order until the judgment is satisfied or the order is vacated.
According to the 6-K, Evolution has begun post-judgment discovery into the location of CDC's assets.
CDC said it is considering all available options, including an appeal of this judgment.
The company said in a separate 6-K that chief financial officer John Stone has resigned, effective immediately.
CDC is a Hong Kong- and Atlanta-based enterprise software and new media company.
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