CDC Corporation, the first Chinese Internet company listed in Nasdaq, has reportedly filed for bankruptcy protection.
The Hong Kong-listed China.com Inc., a subsidiary of CDC Corporation, announced that its website will not be affected by bankruptcy protection of the parent and be operated continually and normally.
CDC said that the company has filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code with the U.S. Bankruptcy Court for the Northern District of Georgia. By June 30, 2011, CDC's total assets were USD377.4 million and its debts were USD250.2 million.
Affected by the news, CDC's share price decreased by 52% to USD0.42 on the date of the announcement and the company's stock transaction was then suspended. To date, the share price of CDC has decreased by 88%.
The share price of CDC Software, a U.S.-listed subsidiary of CDC Corporation, also saw a dive of USD1.28 to USD1.77 due to the bankruptcy protection issue.
Founded in June 1997, CDC Corporation was listed on Nasdaq in 1999. From its early days as an Internet pioneer in Asia, the company has grown and evolved into a value-added operator of, and growth investor in, hybrid enterprise software, IT, and new media businesses. It has five departments, providing software, business, online game, application, Internet, and media services. In August 2009, CDC Software was separated from the group and got listed in the U.S.
Zhou Shun'ao, former top executive in the Xinhua News Agency, has now been nominated as independent director and vice chairman of the board of CDC. Zhou will also serve as a member of nominating committee and remuneration committee of CDC. Zhou held the post of vice chairman of the board of CDC and China.com Inc. from 1999 to 2004, and China CEO of CDC from 1999 to 2000.