Money Matters, Simplified.
Crescent knocks the door of Chapter 11
by Jamie Anderson - June 11, 2009 - comments
Crescent Resources LLC has residential, business and industrial interest in 10 states in the southeastern and southwestern United States
Raleigh, N Carolina, June 11: Crescent Resources LLC, the 40-year-old real estate developer, jointly owned by Duke Energy Corp. (NYSE: DUK) and Morgan Stanley’s (NYSE:MS) real-estate fund unit, filed for Chapter 11 protection in the U.S. Bankruptcy Court in the Western District of Texas, Austin Division.
The Charlotte, North Carolina-based company has also seen some reshuffling in the top management with Arthur Fields, the chief executive officer, hanging up his boots. Andrew Hede, Crescent’s chief restructuring officer, has been named Arthur’s successor.
Arthur will, however, continue to work with Crescent in an advisory capacity, said sources familiar with the matter.
As Crescent seeks bankruptcy protection, it has a debt of $50 million to be paid by the end of 2009. Payments of $75 million are due in 2010 and $100 million of its debt has to be repaid in 2011.
Chapter 11 in Crescent’s scheme of things
Hede said of the logic behind filing for Chapter 11 protection. “We have been in active discussions with our lenders and other stakeholders as we work towards an agreement that will bring our capital structure in line with the current economic environment.”
The company plans to continue its businesses without any major stoppage during the reorganization process. Crescent claims to have garnered an amount of $110 million as Debtor-in-Possession (DIP) financing, which will enable it to carry on its day-to-day business activities.
As part of the Chapter 11 filing, Crescent has sought a court approval “to make certain payments and to maintain key agreements with employees, customers, vendors and partners of continuing operations to ensure the company can maintain its commitment to delivering a high level of amenities and services”.
About Crescent
Famous for high-end real estate communities, Crescent has more than 35 residential and commercial projects under development, primarily in Carolina, Georgia, Texas, Florida and Arizona.
One of the company’s much touted project is the Phipps Tower, a 20-story office building under construction in Buckhead.
The land-management company has been responsible for shaping and developing much of Lake Keowee and a large portion of the mountainous regions in Oconee, Pickens and Anderson counties.