Morgan Joseph TriArtisan’s Financial Restructuring Group Successfully Advised CDC Corporation’s Equity Committee Assisting in Substantially Improving Value

NEW YORK -- (BUSINESS WIRE) -- The investment banking firm of Morgan Joseph TriArtisan LLC (“Morgan Joseph”), announced today that CDC Corporation (“CDC”, the “Debtor” or the “Company”), a multi-national provider of enterprise software solutions, IT solutions and operator of several new media businesses, has confirmed and effectuated a Plan of Reorganization pursuant to the U.S. Bankruptcy Code.

Morgan Joseph’s Financial Restructuring Group served as the exclusive investment banker and financial advisor to the Official Committee of Equity Security Holders of CDC Corporation (the “Committee”), helping shareholders achieve a substantial recovery in the Debtor’s Chapter 11 case.

CDC filed Chapter 11 on October 4, 2011, in order to facilitate the restructuring or the repayment of a judgment claim made against the Company arising from a convertible note issued in 2006. In December 2011, Morgan Joseph spearheaded the formation of an Official Committee of Equity Security Holders in order to protect the interests of the Debtor’s shareholders and to help provide them with a voice during the pendency of the Company’s reorganization efforts.

Morgan Joseph assisted in the evaluation of strategic alternatives, which ultimately included a sale of the Company’s largest asset, ownership in CDC Software, for approximately $250 million. Subsequently, the Morgan Joseph team helped the Debtor and the Committee navigate the challenges of proposing and achieving confirmation for the Joint Plan of Liquidation that went effective on December 19, 2012. The Joint Plan of Liquidation calls for all of the Debtor’s shares to be cancelled and for each shareholder to receive beneficial interests in a liquidating trust. The trust will be responsible for distributing cash to former shareholders as assets are monetized and remaining claims resolved. Additionally, Morgan Joseph was the primary party responsible for negotiating a settlement with the single largest creditor in the case, relieving the Debtor of significant expenditures of time and money in potential litigation, and triggering the release of millions of dollars that were previously reserved for defense and damage costs.

“We view the outcome of the case as being highly successful for our clients, the shareholders of CDC Corporation,” said James Decker, the Head of Morgan Joseph’s Financial Restructuring Group. “At the time that we initially became involved, the Debtor’s share price was approximately $0.10 per share, and there were motions afoot for the appointment of a trustee in the Chapter 11 case. By the time the Plan went effective in mid-December, the stock was trading above $5.10 per share. In late December, shareholders who held onto the stock and received the beneficial interests in the trust were paid over $3.00 per share in cash. Our constituents went from being near-voiceless and holding stock with nominal value to receiving approximately thirty-times their money, in cash, with the right to receive even more in the future.”

About Morgan Joseph TriArtisan LLC

Morgan Joseph TriArtisan LLC (www.mjta.com) is an investment bank engaged in providing financial advice, capital raising and private equity investing. The firm’s services include mergers, acquisitions and restructuring advice, in addition to private placements and public offerings of equity and debt.