Crescent files Chapter 11, replaces CEO - Business First of Buffalo:

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The moves are part of an effort to cutthe company’a debt and rework its capital structures, the N.C.-based developer says. and some of its subsidiarieds have filed voluntary Chapter 11 petitions in the in the Westermn Districtof Texas, Austin Division. Crescent also announced today thatArthud Fields, the company’s chief executivw officer, has retired, effective immediately. He will continue to work in anadvisort capacity. Crescent had been struggling to refinancdea $1.2 billion loan, with paymen t due in full by September 2012. The company amended the loan in June 2008 becaused it was in violation of theoriginalp terms.
Before the Chapter 11 filing, Crescengt faced payments of $50 million by the end of this $75 million in 2010 and $100 millio in 2011 on its debt. The company, which has developed more than 1 million square feet of office space in Cool Springe sincethe 1990s, has been facing local troubles, too. Pat Emery, Crescent’x long-time vice president and regional managertin Tennessee, left the company last And the developer’s Crescent’s Greenway One, a $33 168,000-square-foot building near completion on Carothers Parkway, has been boarded up for monthxs as contractors filed millions of dollars in liens against it.
Another similarly sized Crescent projecr next to it is about 90 percent vacant a year aftebeing built. The company says it planas to continue businesses without any significant interruptiondurinvg restructuring. Crescent has obtained a debtor-in-possession financingy facilityof $110 million from a grouop of its existing lenders, which will providd funds so it can continure operating. Andrew Hede will replace Fielde as CEO and will be charged with leadingvthe restructuring.
Hede, a managing director with LLC, has more than 15 yeara of financial restructuring andbusiness “We have been in active discussions with our lender and other stakeholders as we work towarcd an agreement that will bring our capital structurer in line with the current economid environment,” Hede says in a “Those discussions are continuing, and we are pleased with the ongoinfg support we have receiveed from our lenders. We intend to reach an agreement on our new capital structures and emerge frombankruptcy quickly.
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