Here is what was mentioned in SEC Filing. Any comment. I wonder why CDC corp could not buy back the rest of $54m? because of cash problem or CN refused such proposal? Company did not given out any information regarding it though only 12 days away from deadline. I just bought some today but worried.

As described in the preceding risk factor, in November 2006, we issued $168.0 million in aggregate principal amount of 3.75% Senior Exchangeable Convertible Notes due 2011, or the notes.

If neither of our CDC Software International or CDC Games International subsidiaries is able to complete a “qualified initial public offering”, or a Qualified IPO prior to November 13, 2009, holders have the option to require us to redeem the notes at a redemption price of principal plus accrued and unpaid interest, calculated at the rate of 12.5% per annum applied retroactively from November 13, 2006 to the date of redemption.

As of May 2009, an affiliate of CDC Corporation had purchased approximately $89.0 million in aggregate principal amount of the notes. On April 22, 2009, that same CDC affiliate entered into definitive agreements to purchase an additional $36.8 million in aggregate principal amount of the notes. Upon completion of these transactions, which are subject to certain closing conditions and expected to close no later than August 15, 2009, we expect that we will have acquired an aggregate of $125.8 million, or approximately 75%, in aggregate principal amount of the notes. As a result, we anticipate that the total payment required to redeem the notes in November 2009 would be approximately $53.3 million, representing principal and accrued interest, if each of the remaining non-affiliate holders elects to fully exercise its redemption option.

Although we anticipate being able to satisfy this potential payment obligation and our obligations under the definitive agreements we have entered into to purchase outstanding notes, although such expectation is based upon several factors that are, or may be, beyond our control including, among others, general economic and financial conditions affecting the software industry, the financial and operating performance of our subsidiaries, our ability to repatriate capital from one or all of our subsidiaries and our ability to obtain debt or equity financing on commercially reasonable terms, if at all.

Although none of our subsidiaries have pledged any of its assets or properties to secure our obligations under the notes, nor have any of our subsidiaries guaranteed the performance of our obligations under the notes, there can be no assurance that a default by us under the notes would not materially and adversely impact not only our results of operations or the trading price of our class A ordinary shares, but those of our subsidiaries as well.

If any holders were to obtain judgments in their favor on their collection claims, they could, among other things, then seek to execute those judgments against one or more of our equity interest in our subsidiaries. In that case, if holders holding a sufficient principal amount of notes were successful in executing on judgments in their favor, such holders might collectively be able to acquire title or control over a controlling interest in one or more of our subsidiaries, thereby displacing us as the controlling shareholder. We cannot assure you that under those circumstances we would continue to be able to exercise significant influence or control over our subsidiaries and their respective operations , which could have a material adverse effect on our results of operation and financial condition.