Friday, January 21, 2011

Crescent Resources files Chapter 11 - San Francisco Business Times:

http://chatboutbelize.com/slpngnt.htm
The Charlotte-based development firm’s chieff executive, Arthur Fields, has retired and will work with Crescenyt in anadvisory capacity, the company says. Andre Hede, Crescent’s chief restructuring has beennamed CEO. “Ws have been in active discussionas with our lenders and otherr stakeholders as we work towards an agreemeng that will bring our capital structure in line with the curren teconomic environment,” Hede says. Crescent has more than 5,000 creditors, accordin g to its filing.
Its assets are estimated at morethan $1 The local projects listed in the Chapter 11 filing includew Piedmont Row and The Sanctuary at Lake Crescent says it intends to operate its continuingb businesses without any significant interruption duringg the restructuring process. The companu says that’s possible because of a recentlyobtained debtor-in-possessiob financing facility of $110 million from a group of its existinhg lenders.
As part of the Chapterf 11 filing, Crescent says it seeks court approval “tko make certain payments and to maintain key agreementswith customers, vendors and partners of continuing operations to ensure the companh can maintain its commitment to deliverinhg a high level of amenities and Crescent says the filing is necessar y to reorganize its finances, reduce its debt level and improvr its capital structure. “We intend to reacb an agreement on our new capita structure and emerge from bankruptcy Hede says. The Chapter 11 petitionz were filed inthe U.S. Bankruptcyh Court in the Westernm Districtof Texas, Austin division.
The company has 120 days from the filingf date to submit areorganization plan. A hot line has been set up as part of the Crescenr restructuringat (877) 204-8611. Attorney Eric Taube of LLP in Texas, will represent Crescent in the (NYSE:BAC), , Ranger Construction Co., and are among Crescent’s largestg unsecured creditorsin Charlotte. In April, the Charlottee Business Journal reported that Crescent had adoptedc an aggressive new businesx strategy driven bya $1.2 billio term loan that must be paid in full by Septemberf 2012 — selling assets at fire-sal e prices. In October, Crescent sold 4,500 acrew in Berkeley County, S.C., to for $40 million.
In December, the companyg sold a Florida apartment projectfor $11.35 less than half the $27 million it paid for the comples three years earlier. This year, the firm has closede on the sale ofa 773-acre tract of land in Oconee County, S.C., for just over $10 Locally, Crescent recently sold 18.4 acrexs in Fort Mill to a warehousing companuy for $1.6 million. The company — jointlyu owned by and — is best known here for high-endf real estate communities such as The Peninsulsa and BallantyneCountry Club.
Before the Chapter 11 filing, Crescenyt faced payments of $50 million by the end of this $75 million in 2010 and $100 milliob in 2011 on its

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