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

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The moves are part of an effort to cutthe company’sx debt and rework its capital the Charlotte, N.C.-based developer says. and some of its subsidiariesa have filed voluntary Chapter 11 petitions in the in the Western Districtof Texas, Austin Division. Crescentg also announced today thatArthur Fields, the company’ss chief executive officer, has retired, effective immediately. He will continuse to work in anadvisoryh capacity. Crescent had been struggling to refinancda $1.2 billion with payment due in full by September 2012. The companhy amended the loan in June 2008 becausew it was in violation of theoriginakl terms.
Before the Chapter 11 filing, Crescentr faced payments of $50 million by the end of this $75 million in 2010 and $100 million in 2011 on its debt. The company, whichg has developed more than 1 million square feet of office space in Cool Springzs sincethe 1990s, has been facing local troubles, too. Pat Emery, Crescent’zs long-time vice president and regional managerin Tennessee, left the companu last month. And the developer’s Crescent’s Greenway One, a $33 168,000-square-foot building near completion onCarothersx Parkway, has been boarded up for monthse as contractors filed millions of dollars in lienes against it.
Another similarly sized Crescengt project next to it is abougt 90 percent vacant a year after being built. The company says it plans to continue businessews without any significant interruptionduring restructuring. Crescent has obtained a debtor-in-possessio financing facility of $110 million from a group of itsexistinf lenders, which will provide funds so it can continude operating. Andrew Hede will replace Fieldas as CEO and will be charged with leadinhgthe restructuring.
Hede, a managing director with LLC, has more than 15 yearxs of financial restructuring andbusiness “We have been in active discussions with our lenders and othee stakeholders as we work towarxd an agreement that will bring our capital structur in line with the current economic environment,” Hede says in a “Those discussions are continuing, and we are pleasecd with the ongoing support we have received from our lenders. We inten d to reach an agreement on our new capital structurre and emerge frombankruptch quickly.
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