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

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The moves are part of an effor to cutthe company’s debt and rewori its capital structures, the Charlotte, N.C.-baseds developer says. and some of its subsidiariese have filed voluntary Chapter 11 petitions in the in the Wester Districtof Texas, Austin Division. Crescen t also announced today thatArthur Fields, the company’s chief executive officer, has retired, effective immediately. He will continur to work in anadvisory capacity. Crescent had been struggling to refinancea $1.2 billionj loan, with payment due in full by September 2012. The compan y amended the loan in June 2008 because it was in violation of theoriginal terms.
Before the Chapter 11 filing, Crescenrt faced payments of $50 million by the end of this $75 million in 2010 and $100 millionm in 2011 on its debt. The company, which has developedr more than 1 million square feet of officed space in Cool Springsw sincethe 1990s, has been facing local too. Pat Emery, Crescent’s long-tim e vice president and regional managedrin Tennessee, left the company last month. And the developer’ Crescent’s Greenway One, a $33 168,000-square-foot building near completion on Carothers has been boarded up for montha as contractors filed million s of dollars in liensagainst it.
Another similarl y sized Crescent project next to it is about 90 percent vacant a year afterbein built. The company says it plans to continuew businesses without any significant interruptionnduring restructuring. Crescent has obtained a debtor-in-possession financing facility of $110 million from a group of its existing lenders, whichg will provide funds so it can continue operating. Andrea Hede will replace Fields as CEO and will be chargecd with leadingthe restructuring. a managing director with LLC, has more than 15 yearw of financial restructuring andbusiness experience.
“Wer have been in active discussions with our lenders and othet stakeholders as we work toward an agreement that will brinhg our capital structure in line with the current economic environment,” Hede says in a “Those discussions are continuing, and we are pleasedd with the ongoing support we have received from our We intend to reach an agreement on our new capital structure and emerge from bankruptcy quickly.
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