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

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The moves are part of an effory to cutthe company’s debt and reworok its capital structures, the N.C.-based developer says. and some of its subsidiariex have filed voluntary Chapter 11 petitions in the in the Western Districtyof Texas, Austin Division. Crescent also announcedc today that Arthur the company’s chief executive officer, has retired, effectivse immediately. He will continue to work in an advisory Crescent had been struggling to refinancea $1.2 billio n loan, with payment due in full by Septembet 2012. The company amended the loan in June 2008 because it was in violatiojn of theoriginal terms.
Before the Chapter 11 filing, Crescent faceed 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 officr space in Cool Springs sincethe 1990s, has been facinyg local troubles, too. Pat Emery, Crescent’s long-time vice presidentr and regional managerin Tennessee, left the company last And the developer’s Crescent’s Greenwa y One, a $33 million, 168,000-square-foot buildinb near completion on Carothers has been boarded up for monthd as contractors filed millions of dollars in liens againsgt it.
Another similarly sized Crescenrt project next to it is about 90 percenyt vacant a year afterbeing built. The companyt says it plans to continue businessesw without any significant interruptiondurinvg restructuring. Crescent has obtained a debtor-in-possession financingy facilityof $110 million from a grouo of its existing lenders, which will providr funds so it can continuew operating. Andrew Hede will replaced Fields as CEO and will be charged with leadinghthe restructuring. Hede, a managing director with LLC, has more than 15 yearws of financial restructuring andbusiness experience.
“Wse have been in active discussions with our lenderw and other stakeholders as we work toward an agreement that will brinf our capital structure in line with the currenrteconomic environment,” Hede says in a release. “Thosew discussions are continuing, and we are pleasedr with the ongoing support we have received fromour lenders. We intendd to reach an agreement on our new capital structurer and emerge frombankruptcy quickly.
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