Sept. 7 (Bloomberg) -- CDC Corp., a China-based enterprise software developer also known as Chinadotcom, won a judge’s approval of a bankruptcy reorganization plan where shareholders will get as much as $6.10 a share.
The shares yesterday rose as much as 21 percent to $6 as of 3:52 p.m. New York time after opening at $4.95. Shares closed at $5.44, up 49 cents.
The cash for equity holders resulted from CDC’s sale of its 87 percent interest in CDC Software Corp. for $249.8 million to Archipelago Holding, an affiliate of Vista Equity Holdings. After paying a $65 million secured judgment claim and other costs, CDC was left with a net of $172.8 million when the sale was completed in April.
Unsecured creditors with $2.9 million in claims were paid in full and thus didn’t vote on the plan.
Shareholders should expect to receive at least $5.01 a share, according to the disclosure statement explaining the plan. The stock price has ranged in the last three years from $9.57 in April 2010 to 78 cents in December 2011.
CDC’s petition listed assets at $377.4 million and debt of $250.2 million. For the first half of 2011, revenue of $158.9 million resulted in a $17.8 million operating loss and a $23.9 million net loss.
The case is In re CDC Corp., 11-79079, U.S. Bankruptcy Court, Northern District of Georgia (Atlanta).
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