CDC's $250 million share sale complete; Evolution settlement approved

By Caroline Salls

Pittsburgh, April 11 - CDC Corp. has completed the $249.79 million sale of its indirect shareholdings in CDC Software Corp. to Vista Equity Partners affiliate Archipelago Holdings, according to a 6-K filed with the Securities and Exchange Commission on Wednesday.

Archipelago paid $10.50 per share in cash.

In addition, CDC said the U.S. Bankruptcy Court for the Northern District of Georgia has approved its settlement with Evolution CDC SPV Ltd., Evolution Master Fund Ltd., SPC, Segregated Portfolio M, Evo China Fund and E1 Fund, Ltd. The settlement is related to a $67 million judgment in favor of Evolution, CDC's appeal of the judgment and its claim against Evolution.

Under the settlement, CDC will satisfy the Evolution judgment by paying a settlement amount of $65.36 million plus pre-judgment and post-judgment interest at a rate of $32,230 per day.

A $2.1 million discount will be applied to the payment if it is made by Oct. 31, 2012. The discount will be $100,000 if the payment is made after Oct. 31.

In addition, the company said in its settlement motion that Evolution will have an allowed claim, in the settlement amount, in CDC's bankruptcy case for all purposes, including voting and payment.

CDC Corp. is a Hong Kong- and Atlanta-based enterprise software and new media company. It filed for bankruptcy on Oct. 4, 2011. Its Chapter 11 case number is 11-79079.

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