SOURCE: Evolution Capital Management LLC

November 11, 2010 14:46 ET

Court Grants Evolution's Preliminary Injunction Motion Against CDC Corporation

SANTA MONICA, CA--(Marketwire - November 11, 2010) - E1 Fund Ltd. ("E1") Evolution CDC SPV Ltd. ("SPV") and Evolution Master Fund Ltd. SPC (together, "Evolution") are pleased to announce that, by Order dated November 10, 2010, the Supreme Court of New York granted Evolution's motion for a preliminary injunction against CDC Corporation (NASDAQ: CHINA) in connection with Evolution's pending litigation against CDC to collect in excess of $50 million owed to Evolution under certain 3.75 percent Senior Exchangeable Convertible Notes ("Notes"). Pursuant to the Court's ruling, CDC Corporation is enjoined from unilaterally nullifying the covenants in the parties' Note Purchase Agreement ("NPA") during the pendency of the litigation, and from repudiating certain affirmative and negative covenants that CDC owes to Evolution. 

The Court stated in its decision that "CDC's alleged unilateral termination of the negative covenants and threatened breach of its affirmative obligations subverts the purpose of those negative and affirmative covenants and rights that Evolution specifically bargained for in order to protect its investment in CDC," and that "Evolution has demonstrated that it is likely to succeed on the merits of its claims insofar as both Amendments appear to violate express provisions of the NPA and the Notes."

While not a final determination of its claims, Evolution is pleased with the Court's decision and will continue to pursue its rights against CDC in Court.

A full copy of the Court's decision will be publicly available at http://iapps.courts.state.ny.us/webcivil/FCASSearch.

About Evolution
Evolution is managed by Evolution Capital Management LLC ("ECM"), a global investment firm specializing in asset management, market-making and enterprise financial software that was founded in 2002 to focus on global investment opportunities. ECM manages and trades portfolios across several fund products that primarily focus on equity and equity derivative trading strategies in Asia. ECM has made substantial investments in infrastructure and technology to support first class functions in operations, risk management and trading.