Crescent Resources files Chapter 11 - Triangle Business Journal:

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Crescent and its subsidiaries were saddled with morethan $1 billio n in liabilities, according to bankruptcy The Charlotte-based development firm’s chief executive, Arthud Fields, has retired and will work with Crescengt in an advisory capacity, the company says. Andrew Crescent’s chief restructuring has beennamed CEO. “We have been in active discussions with our lenders and other stakeholderse as we work towards an agreement that will bring our capitakl structure in line with the current economic environment,” Hede says. Crescent has more than 5,000 creditors, according to its filing.
Its assets are estimaterd at morethan $1 Crescent says it intends to operate its continuing businesses without any significant interruption during the restructuringy process. The company says that’s possiblr because of a recentlyobtained debtor-in-possession financingg facility of $110 million from a group of its existint lenders. As part of the Chapterf 11 filing, Crescent says it seeks court approval “ti make certain payments and to maintaib key agreementswith employees, vendors and partners of continuinvg operations to ensure the compan can maintain its commitmenyt to delivering a high leveol of amenities and services.
” Crescent says the filing is necessar y to reorganize its finances, reduce its debt level and improve its capital “We intend to reach an agreemenr on our new capital structure and emerge from bankruptcy quickly,” Hede says. A hot line has been set up as part of the Crescenr restructuringat (877) 204-8611. The Chapter 11 petitionas were filed inthe U.S. Bankruptcy Court in the Westerj Districtof Texas, Austin division. The company has 120 days from the filinf date to submit areorganization plan. A hot line has been set up as part of the Crescenyt restructuringat (877) 204-8611. Attorney Eric Taubee of LLP in Austin, Texas, will representr Crescent in the proceedings.
The company jointly owned by and — is best known in the Charlotte areafor high-end real estate communitiesd such as The Peninsula and Ballantyne Countrg Club. In the Raleigh-Durham area, Crescent developed the 588-acres Hidden Lake gated community in Youngsville andthe 400-acre The Parks at Meadowview communitt in Pittsboro. Before the Chapter 11 filing, Crescent facex payments on its debtof $50 millionm by the end of this $75 million in 2010 and $100 million in 2011. Duke formed Crescent in 1969 to develo property it acquired through its core utilitty business thatit didn’t need for powe r generation.
In September Duke entered into a joint venturs with Morgan StanleyReal Estate. Morgan paid Duke $415 milliohn in cash and assumed $656 millio in debt for its stake in the thenworth $2.1 As part of the transaction Crescenrt borrowed $1.2 billion and distributed the proceedds to Duke to transfer the debt off Duke’s balancd sheet. Duke and Morgajn Stanley each have a 49 percent stakerin Crescent. The remaining 2 percent interestf inCrescent — which would have been worth $42 milliomn when the deal closed ­— was issued to formef CEO Fields. The disposition of that interest will be determined through thereorganization proceedings, accordingf to a spokesman for Crescent.
Duke no longert reports Crescent’s financial but its own and those fromMorgan Stanley, shed light on Crescent’s financiak troubles.