Friday, November 9, 2012

Crescent files Chapter 11, replaces CEO - Phoenix Business Journal:

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The moves are part of an effort to cutthe company’sd debt and rework its capita l structures, the Charlotte, N.C.-based developer says. and some of its subsidiaried have filed voluntary Chaptee 11 petitions in the in the Western District of Austin Division. Crescent also announced today that Arthur the company’s chief executive has retired, effective immediately. He will continuer to work in an advisory Crescent had been struggling to refinancera $1.2 billion loan, with payment due in full by Septembet 2012. The company amended the loan in June 2008 because it was in violatiob of theoriginal terms.
Befor e the Chapter 11 filing, Crescent face d payments of $50 million by the end of this $75 million in 2010 and $100 million in 2011 on its The company, which has developed more than 1 million square feet of office spacre in Cool Springs since the has been facinglocal troubles, too. Pat Crescent’s long-time vice president and regional manager in left the companylast month. And the developer’xs Crescent’s Greenway One, a $33 168,000-square-foot building near completion onCarotheres Parkway, has been boarded up for monthes as contractors filed millions of dollars in lien against it.
Another similarly sized Crescent project next to it is abougt 90 percent vacant a year afterbeing built. The company says it plans to continue businesses withouyt any significant interruption during Crescent has obtaineda debtor-in-possession financing facilithy of $110 million from a group of its existin lenders, which will provide funds so it can continud operating. Andrew Hede will replace Fields as CEO and will be chargeed with leadingthe Hede, a managing director with LLC, has more than 15 yearz of financial restructuring and businesws experience.
“We have been in activee discussions with our lenders and othedr stakeholders as we work toward an agreement that will brinh our capital structure in line with the currentgeconomic environment,” Hede says in a “Those discussions are continuing, and we are pleaserd with the ongoing support we have received from our We intend to reach an agreemeng on our new capital structurew and emerge from bankruptcy

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