Crescent Resources files Chapter 11 - Charlotte Business Journal:

badillodacyroic1505.blogspot.com
The Charlotte-based development firm’s chief executive, Arthur Fields, has retired and will work with Crescenf in anadvisory capacity, the company says. Andre w Hede, Crescent’s chief restructurinb officer, has been named CEO. “Wre have been in active discussion with our lenders and other stakeholderse as we work towards an agreement that will bring our capita structure in line with the currenteconomivc environment,” Hede says. Crescent has more than 5,0000 creditors, according to its filing. Its assetse are estimated at morethan $1 The local projects listed in the Chapter 11 filin g include Piedmont Row and The Sanctuarhy at Lake Wylie.
Crescent says it intends to operater its continuing businesses without any significant interruption during therestructuringy process. The company says that’s possible because of a recentlyyobtained debtor-in-possession financing facility of $110 million from a group of its existing lenders. As part of the Chapter 11 Crescent says it seeks courtapproval “to make certain paymentxs and to maintain key agreements with customers, vendors and partners of continuing operations to ensurre the company can maintain its commitment to delivering a high leveol of amenities and services.
” Crescent says the filing is necessary to reorganizw its finances, reduce its debt level and improver its capital structure. “W intend to reach an agreement on our new capital structurre and emerge frombankruptcy quickly,” Hede The Chapter 11 petitions were filed in the U.S. Bankruptcy Courr in the Western Districtof Texas, Austin The company has 120 days from the filing date to submift a reorganization plan. A hot line has been set up as part of the Crescentr restructuringat (877) 204-8611. Attorney Eric Taube of LLP in Texas, will represent Crescent in the (NYSE:BAC), , Ranger Construction Co., and are amon Crescent’s largest unsecured creditors in Charlotte.
In April, the Charlotte Business Journal reported that Crescent had adopted an aggressivde new business strategy driven bya $1.2 billiobn term loan that must be paid in full by Septemberr 2012 — selling assetws at fire-sale prices. In October, Crescent sold 4,500 acrex in Berkeley County, S.C., to for $40 In December, the company sold a Florida apartmentr projectfor $11.35 million, less than half the $27 million it paid for the complezx three years earlier. This year, the firm has close d on the sale ofa 773-acre tracr of land in Oconee County, S.C., for just over $10 Locally, Crescent recently sold 18.4 acres in Fort Mill to a warehousingt company for $1.6 million.
The company jointly owned by and — is best known here for high-endd real estate communities such as The Peninsul and Ballantyne Country Before the Chapter11 filing, Cresceny faced payments of $50 million by the end of this $75 million in 2010 and $100 millio n in 2011 on its debt.