Competing reorganization plans for CDC Chapter 11 case due by March 1

By Caroline Salls

Pittsburgh, Feb. 8 - CDC Software Corp. and other third parties can file a competing plan of reorganization for CDC Corp.'s Chapter 11 bankruptcy case by March 1, according to a 6-K filed Wednesday with the Securities and Exchange Commission.

Any third-party plans will compete with CDC's planned $249.79 million sale of the shares of CDC Software owned by CDC Software International Corp. to stalking horse bidder Archipelago Holding and will ultimately be submitted under court supervision to a vote of CDC shareholders.

At a confirmation hearing currently scheduled for April 26, the bankruptcy court will consider the results of the CDC shareholder vote on each of the competing plans, as well as the motion to approve the sale of CDC's indirect ownership in CDC Software, according to court documents.

The court will determine at the hearing which proposal, if any, will be adopted and implemented.

In addition, CDC Software majority shareholder CDC Software International Corp. has requisitioned an extraordinary general meeting of CDC Software's members, which will be held on March 12 in Hong Kong.

At that meeting, the members will consider a resolution to remove all of CDC Software's current directors and consider the appointment of Dwight Mamanteo, Marcus A. Watson and Joseph D. Stutz as directors.

The members will also consider a resolution to immediately desist from taking any steps to sell Ross Systems Inc, Tradebeam Inc and/or any other part of CDC Software's business or assets to Marlin Management Company LLC or any other third party and to cancel or unwind any contract or transaction entered into in connection with that sale.

According to the 6-K, CDC Software is also considering its options for an appeal of a Feb. 7 ruling granting in part and denying in part a preliminary injunction requested by CDC.

As previously reported, CDC Software is prohibited under the injunction from selling any of its assets, incurring any debt outside of the ordinary course of business or entering into similar transactions.

CDC Software is also prohibited from entering into any binding transaction that commits its resources to complete a transaction without court approval.

The court said the CDC Software entities did not violate the automatic stay imposed by CDC's bankruptcy filing.

CDC Corp., a Hong Kong- and Atlanta-based enterprise software and new media company, filed for bankruptcy on Oct. 4 in the U.S. Bankruptcy Court for the Northern District of Georgia. Its Chapter 11 case number is 11-79079.

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