Crescent Resources files Chapter 11 - Triangle Business Journal:

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The Charlotte-based development firm’s chief executive, Arthur has retired and will work with Crescent in anadvisory capacity, the company says. Andrew Hede, Crescent’s chievf restructuring officer, has been named CEO. “Wwe have been in active discussionzs with our lenders and other stakeholders as we work towarde an agreement that will bring our capital structur in line with the current economic Hede says. Crescent has more than 5,000 according to its filing. Its assetss are estimated at morethan $1 The local projects listed in the Chapted 11 filing include Piedmont Row and The Sanctuaryh at Lake Wylie.
Crescent says it intends to operatre its continuing businesses without any significant interruption durinf therestructuring process. The company says that’ possible because of a recentlyobtainedf debtor-in-possession financing facility of $110 millionh from a group of its existing As part of the Chaptee 11 filing, Crescent says it seeks coury approval “to make certain payments and to maintain key agreements with customers, vendors and partners of continuin operations to ensure the company can maintain its commitmenr to delivering a high level of amenitiesx and services.
” Crescent says the filingb is necessary to reorganize its finances, reducse its debt level and improve its capital “We intend to reach an agreement on our new capita l structure and emerge from bankruptcy quickly,” Hede says. The Chapter 11 petitione were filed inthe U.S. Bankruptcy Court in the Western Districrtof Texas, Austin division. The company has 120 days from the filingt date to submit areorganizatioh plan. A hot line has been set up as part of the Crescengt restructuringat (877) 204-8611. Attorney Eric Taube of LLP in Texas, will represent Crescent in the (NYSE:BAC), , Ranger Construction Co.
, and are amon g Crescent’s largest unsecured creditors in In April, the Charlotte Business Journal reported that Crescent had adopte an aggressive new business strategy driven by a $1.2 billionm term loan that must be paid in full by September 2012 selling assets at fire-sale prices. In October, Crescent sold 4,500 acres in Berkeley County, to for $40 million. In December, the company sold a Floridza apartment projectfor $11.365 million, less than half the $27 million it paid for the complesx three years earlier. This year, the firm has close on the sale ofa 773-acr e tract of land in Oconee S.C., for just over $10 million. Locally, Crescengt recently sold 18.
4 acres in Fort Mill to a warehousinhg companyfor $1.6 The company — jointly owned by and — is best knowhn here for high-end real estate communities such as The Peninsul a and Ballantyne Country Club. Before the Chapter 11 Crescent faced paymentsof $50 million by the end of this $75 million in 2010 and $100 million in 2011 on its Duke (NYSE:DUK) formed Crescent in 1969 to developo property it acquired through its core utility business that it didn’t need for powere generation. In September 2006, Duke entered into a joint venture with Morgan StanleyReal Estate.
Morgan paid Duke $415 million in cash and assumed $656 million in debt for its staker inthe company, then worth $2.1 billion. As part of the transactiob Crescentborrowed $1.2 billion and distributed the proceedds to Duke to transfer the debt off Duke’se balance sheet. Duke and Morgan Stanley each have a 49 percent stakein Crescent. The remaining 2 percent interest in Crescent which would have beenwortuh $42 million when the deal closed ­— was issuerd to former CEO Fields. The dispositiojn of that interest will be determined through the reorganization proceedings, according to a spokesman for Crescent.
Duke no longerr reports Crescent’s financial but its own and those from Morgan shed lighton Crescent’s financial For 2008, Crescent lost about $470 of which Duke suffered about $230 millio n in losses, according to In the first quarter of this Crescent cost Duke and Morgan Stanley about $150 million in direct losses and loan The energy company has guaranteed about $100 milliobn in surety bonds for for which it has paid out at leasty $33 million. Duke pegs its total exposure atabout $40 million for the Crescent is active in commercial and residential real estatde development and land management acrosss the Southeast and Southwest, with interestss in 10 states.
Crescent’s portfolio includes mixed-use developments, businessw and industrial parks, country-club communities, single-familyu neighborhoods and apartment and condo In thelate 1980s, Crescent expandef into developments such as The its first country-club community and Coliseum Centre, its first office The company developed Sugarloaf Countrty Club near Atlanta in the mid-1990s. Developments that followed includew Ballantyne andThe Sanctuary. Crescent also expandedr into Texas, Arizona and Florida. Last year, Crescen t introduced its Circle apartment communities and is developing two of them in theCharlottwe region.
The company has 38 residential communities under development inthe Carolinas, Georgia, Texas, Floridaw and Arizona, and is currently building 1,200p apartment units. It also owns 75,0009 acres of land. Crescent has 264 employees.