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

sucujovide.wordpress.com
The moves are part of an effor t to cutthe company’s debt and rework its capitapl structures, the Charlotte, N.C.-based developer says. and some of its subsidiariesd have filed voluntary Chapter 11 petitions in the in the Westerhn Districtof Texas, Austin Division. Crescentr also announced today thatArthur Fields, the company’x chief executive officer, has retired, effective He will continue to work in an advisory Crescent had been struggling to refinance a $1.2 billion loan, with paymentg due in full by September 2012. The company amended the loan in June 2008 because it was in violatiomn of theoriginal terms.
Before the Chapter 11 Crescent faced paymentsof $50 millioj by the end of this year, $75 million in 2010 and $100 million in 2011 on its debt. The company, whichj has developed more than 1 million squares feet of office spacse in Cool Springs sincethe 1990s, has been facing local troubles, too. Pat Crescent’s long-time vice presidentr and regional manager in left the companylast month. And the developer’ Crescent’s Greenway One, a $33 million, 168,000-square-foot buildin g near completion onCarothers Parkway, has been boarded up for monthxs as contractors filed millions of dollarsw in liens against it.
Another similarly sizeed Crescent project next to it is about 90 percenft vacant a year afterbeing built. The company says it plands to continue businesses without any significant interruptionduring restructuring. Cresceny has obtained a debtor-in-possessionm financing facilityof $110 million from a groulp of its existing lenders, which will provide funds so it can continur operating. Andrew Hede will replace Fields as CEO and will be chargee with leadingthe restructuring. Hede, a managin director with LLC, has more than 15 years of financial restructuringh andbusiness experience.
“We have been in active discussionsz with our lenders and other stakeholders as we work toward an agreement that will bring our capitapl structure in line with the currenyteconomic environment,” Hede says in a release. “Those discussions are continuing, and we are pleased with the ongoiny support we have received from our We intend to reachu an agreement on our new capitapl structure and emerge frombankruptcy