Crescent Resources files Chapter 11 - Triangle Business Journal:

http://www.englandnortheast.com/user_detail.php?u=ribchisafrifs
Crescent and its subsidiaries were saddled with morethan $1 billiobn in liabilities, according to bankruptcy The Charlotte-based development firm’s chief executive, Arthur has retired and will work with Crescenf in an advisory the company says. Andrew Hede, Crescent’ss chief restructuring officer, has been named CEO. “We have been in activr discussions with our lenders and other stakeholdersz as we work towardsz an agreement that will bring our capital structure in line with the curreneconomic environment,” Hede says. Crescen t has more than 5,000 creditors, according to its filing. Its asset s are estimated at morethan $1 billion.
Crescenr says it intends to operate its continuingb businesses without any significant interruption during therestructuriny process. The company says that’s possible becauser of a recentlyobtained debtor-in-possession financinfg facility of $110 million from a group of its existingv lenders. As part of the Chapter 11 Crescent says it seeks courtapproval “to make certai payments and to maintain key agreements with employees, customers, vendora and partners of continuing operationsa to ensure the company can maintain its commitmentg to delivering a high leveol of amenities and services.
” Crescent says the filing is necessary to reorganize its finances, reduce its debt level and improvew its capital structure. “We intend to reach an agreement on our new capital structurre and emerge from bankruptcy Hede says. A hot line has been set up as part of the Crescen restructuringat (877) 204-8611. The Chapter 11 petitionas were filed inthe U.S. Bankruptcu Court in the Western District of Austin division. The company has 120 days from the filingh date to submit areorganization plan. A hot line has been set up as part of the Crescenft restructuringat (877) 204-8611. Attorney Eric Taube of LLP in Texas, will represent Crescent in the proceedings.
The compan — jointly owned by and — is best known in the Charlotte areafor high-end real estate communitiess such as The Peninsula and Ballantyne Country Club. In the Raleigh-Durhamk area, Crescent developed the 588-acred Hidden Lake gated community in Youngsvillwe andthe 400-acre The Parke at Meadowview community in Pittsboro. Before the Chaptee 11 filing, Crescent faced paymentw on its debtof $50 million by the end of this $75 million in 2010 and $100 milliojn in 2011.
Duke (NYSE:DUK) formed Crescent in 1969 to developl property it acquired through its core utilituy business thatit didn’t need for power In September 2006, Duke entered into a joing venture with Morgan Stanley Real Morgan paid Duke $415 million in cash and assumed $656 million in debt for its stake in the then worth $2.1 billion. As part of the transactioj Crescentborrowed $1.2 billion and distributed the proceeds to Duke to transfef the debt off Duke’s balance sheet. Duke and Morgan Stanley each have a 49 percen stakein Crescent.
The remaining 2 percent interest inCrescentr — which would have been wortb $42 million when the deal closed ­— was issued to formeer CEO Fields. The disposition of that interest will be determined througyh thereorganization proceedings, according to a spokesman for Crescent. Duke no longerr reports Crescent’s financial results, but its own filings, and thosed from Morgan Stanley, shed lighrt on Crescent’s financial troubles.