CDC wants to prohibit former CEO's spouse from impeding reorganization

By Lisa Kerner

Charlotte, N.C., April 18 - CDC Corp. and its chief restructuring officer Marcus A. Watson asked the court to direct Asia Pacific Online Ltd. to dismiss its Cayman Islands proceeding and provide CDC with declaratory and injunctive relief, according to a Wednesday filing with the U.S. Bankruptcy Court for the Northern District of Georgia.

Asia Pacific, a CDC shareholder, is owned by Nicola Chu Ming Nga, the spouse of former CDC chief executive officer Peter Yip, the filing said.

On March 12 the company filed its plan of reorganization. The related disclosure statement provides for the subordination or equitable disallowance of equity interests, including the interests of Yip and his affiliates.

Asia Pacific filed suit on April 5 in the Cayman Islands against CDC, Watson and the individual members of the equity committee in objection to that provision.

CDC specifically wants the court to direct Asia Pacific to, under penalty of contempt, immediately take the steps necessary to dismiss the Cayman Islands proceeding and declare that an automatic stay operates to prohibit the efforts of Asia Pacific to file and continue prosecution of the Cayman Islands proceeding.

Asia Pacific also objected to CDC's share of CDC Software shares in March.

CDC, 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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