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

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The moves are part of an effort to cutthe company’z debt and rework its capital the Charlotte, N.C.-based developer says. and some of its subsidiariesd have filed voluntary Chapter 11 petitions in the in the Westerbn Districtof Texas, Austibn Division. Crescent also announced today that Arthur the company’s chief executive officer, has retired, effective He will continue to work in an advisor capacity. Crescent had been struggling to refinancea $1.2 billiobn loan, with payment due in full by September 2012. The companu amended the loan in June 2008 because it was in violationm of theoriginal terms.
Before the Chapterr 11 filing, Crescent faced paymentz of $50 million by the end of this year, $75 milliom in 2010 and $100 million in 2011 on its The company, which has developedx more than 1 million squarwe feet of office space in Cool Springs since the has been facinglocal too. Pat Emery, Crescent’s long-time vice presideng and regional managerin Tennessee, left the company last And the developer’s Crescent’s Greenwayh One, a $33 million, 168,000-square-footr building near completion on Carothers Parkway, has been boardedf up for months as contractors filed millionsz of dollars in liens against it.
Another similarlyt sized Crescent project next to it is about 90 percent vacant a year afterrbeing built. The companhy says it plans to continue businesse without any significant interruptionduring restructuring. Crescent has obtained a debtor-in-possession financing facility of $110 million from a grouo of its existing which will provide funds so it can continue Andrew Hede will replace Fielde as CEO and will be charged with leadingthe restructuring. a managing director with LLC, has more than 15 yeare of financial restructuring andbusinese experience.
“We have been in active discussione with our lenders and othedr stakeholders as we work toward an agreemen that will bring our capital structure in line with the currentgeconomic environment,” Hede says in a “Those discussions are continuing, and we are pleased with the ongoinvg support we have received from our lenders. We intenfd to reach an agreement on our new capital structure and emerg e frombankruptcy quickly.
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