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IT Firm Files for Bankruptcy

October 06 2011

CDC Corp. (NASD: CHINA) filed for Chapter 11 bankruptcy protection on Tuesday, Oct. 4, according to a filing with the U.S. Securities and Exchange Commission. CDC provides software and information technology services and its CDC Global Services division also provides IT staffing.

The company said the bankruptcy filing will “facilitate restructuring, which is designed to restore the company to long-term financial health.” CDC said a $65.4 million court judgment against it on Sept. 8 helped prompt the bankruptcy decision, according to the SEC filing. The judgment was in an ongoing case involving Evolution CDC SPV Ltd., Evolution Master Fund Ltd. and others.

CDC’s bankruptcy filing includes only CDC Corp. and not its subsidiaries, which are expected to operate in the ordinary course of business.

In a separate SEC filing on Sept. 16, CDC reported its CFO John Stone resigned citing concerns about a special committee review.

The company’s main offices are in Hong Kong and Atlanta. It posted revenue of $156.4 million in the six months ended June 30, 2011; its CDC Global Services division posted revenue of $32.2 million during that period.

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