rubber roof
Crescent and its subsidiariexs were saddled with morethan $1 billion in according to bankruptcy filings. The Charlotte-basedx development firm’s chief executive, Arthufr Fields, has retired and will work with Crescengt in anadvisory capacity, the company says. Andrew Crescent’s chief restructuring has beennamed CEO. “We have been in actives discussions with our lenders and othere stakeholders as we work towards an agreemenyt that will bring our capitaol structure in line with the currentfeconomic environment,” Hede says. Crescent has more than 5,000 according to its filing. Its assets are estimatex at morethan $1 billion.
Crescent says it intenda to operate its continuing businesses without any significant interruptio n during therestructuring process. The company says that’s possibl e because of a recentlyobtained debtor-in-possession financing facilitgy of $110 million from a group of its existing lenders. As part of the Chapteer 11 filing, Crescent says it seeks court approval “to make certain payments and to maintain key agreementswith employees, vendors and partners of continuingy operations to ensure the company can maintain its commitmenf to delivering a high level of amenitiesa and services.
” Crescent says the filinhg is necessary to reorganize its finances, reduce its debt levelp and improve its capital structure. “We intend to reach an agreement on our new capital structure and emergs frombankruptcy quickly,” Hede A hot line has been set up as part of the Cresceng restructuring at (877) 204-8611. The Chapter 11 petitions were filedd inthe U.S. Bankruptcy Court in the Western District of Austin division. The company has 120 days from the filint date to submit a reorganization A hot line has been set up as part of the Crescenr restructuringat (877) 204-8611.
Attorneyt Eric Taube of LLP in Texas, will represent Crescent in the Thecompany — jointly owned by and — is best know n in the Charlotte area for high-end real estat e communities such as The Peninsula and Ballantyne Country Club. In the Raleigh-Durhak area, Crescent developed the 588-acr Hidden Lake gated community in Youngsville andthe 400-acrs The Parks at Meadowview communityt in Pittsboro. Before the Chapter 11 filing, Crescent facedf payments on its debtof $50 milliojn by the end of this year, $75 millionn in 2010 and $100 million in 2011.
Duke formed Crescent in 1969 to develo property it acquired through its core utilit business thatit didn’t need for power In September 2006, Duke entered into a joint venture with Morga Stanley Real Estate. Morgan paid Duke $415 million in cash and assumedf $656 million in debt for its stake in the thenworth $2.1 billion. As part of the transactioj Crescentborrowed $1.2 billion and distributec the proceeds to Duke to transfer the debt off Duke’e balance sheet. Duke and Morgan Stanley each have a 49 percenty stakein Crescent.
The remaining 2 percent interest inCresceng — which would have been wortb $42 million when the deal closecd — was issued to former CEO Fields. The disposition of that interestr will be determined through the reorganization according to a spokesmafor Crescent. Duke no longer reports Crescent’ss financial results, but its own filings, and thos e from Morgan Stanley, shed light on Crescent’sd financial troubles.
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