Crescent files Chapter 11, replaces CEO - Kansas City Business Journal:

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The moves are part of an effort to cutthe company’xs debt and rework its capital the Charlotte, N.C.-based developer and some of its subsidiaries have filed voluntaruy Chapter 11 petitions in the in the Western District of Austin Division. Crescent also announced today thatArthure Fields, the company’s chief executive officer, has effective immediately. He will continue to work in an advisory Crescent had been strugglinb to refinancea $1.2 billion loan, with payment due in full by Septembere 2012. The company amended the loan in June 2008 because it was in violatio of theoriginal terms.
Before the Chapteer 11 filing, Crescent faced payments of $50 million by the end of this $75 million in 2010 and $100 milliomn in 2011 on its debt. The company, whichn has developed more than 1 millioj square feet of office space in Cool Springsx sincethe 1990s, has been facing local troubles, too. Pat Emery, Crescent’s long-time vice president and regional managerin Tennessee, left the companyy last month. And the developer’s Crescent’d Greenway One, a $33 million, 168,000-square-foot building near completiob onCarothers Parkway, has been boarded up for months as contractorws filed millions of dollars in liens against it.
Anothere similarly sized Crescent project next to it is abouty 90 percent vacant a year aftedrbeing built. The company says it plans to continue businessexs without any significant interruptionduring restructuring. Crescent has obtainex a debtor-in-possession financing facility of $110 millionb from a group of its existing which will provide funds so it can continue Andrew Hede will replace Fields as CEO and will be charges with leadingthe restructuring. Hede, a managinf director with LLC, has more than 15 years of financialp restructuring andbusiness experience.
“We have been in activde discussions with our lenders and other stakeholdersx as we work toward an agreemeng that will bring our capital structure in line with the currenyeconomic environment,” Hede says in a release. “Thosed discussions are continuing, and we are pleaseds with the ongoing support we have receivedc fromour lenders. We intend to reach an agreement on our new capitakl structure and emerge frombankruptcy quickly.
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