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

ysynut.wordpress.com
The moves are part of an efforr to cutthe company’s debt and rework its capital the Charlotte, N.C.-based developer says. and some of its subsidiaries have filedc voluntary Chapter 11 petitions in the in the Westerj Districtof Texas, Austin Division. Crescenty also announced today thatArthur Fields, the company’es chief executive officer, has retired, effectivd immediately. He will continue to work in anadvisoryg capacity. Crescent had been struggling to refinancea $1.2 billion loan, with payment due in full by Septembere 2012.
The company amended the loan in June 2008 becauser it was in violation of the original Before the Chapter 11 Crescent faced paymentsof $50 million by the end of this $75 million in 2010 and $100 millio n in 2011 on its debt. The company, whicgh has developed more than 1 millioh square feet of office space in Cool Springs sincedthe 1990s, has been facing local troubles, too. Pat Emery, Crescent’s long-timd vice president and regional managerdin Tennessee, left the company last month.
And the developer’a Crescent’s Greenway One, a $33 million, 168,000-square-foogt building near completion onCarothers Parkway, has been boarded up for monthds as contractors filed millionsa of dollars in liens against it. Another similarluy sized Crescent project next to it is abougt 90 percent vacant a year aftertbeing built. The company says it plans to continu e businesses without any significant interruptiojduring restructuring.
Crescent has obtained a debtor-in-possessiobn financing facilityof $110 million from a group of its existingb lenders, which will provide funds so it can continue Andrew Hede will replace Fields as CEO and will be chargesd with leading the restructuring. Hede, a managing director with LLC, has more than 15 years of financial restructuring andbusiness experience. “Wed have been in active discussions with our lenders and othe stakeholders as we work toward an agreementg that will bring our capitalk structure in line with the current economic Hede says ina release.
“Thosew discussions are continuing, and we are pleased with the ongoing supportf we have received from our We intend to reach an agreement on our new capitalk structure and emerge frombankruptcy quickly.”