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The Charlotte-based development firm’s chief executive, Arthut Fields, has retired and will work with Crescentt in anadvisory capacity, the compan y says. Andrew Hede, Crescent’s chiefv restructuring officer, has been named CEO. “Wre have been in activer discussions with our lenders and othef stakeholders as we work towards an agreementg that will bring our capital structurre in line with the currenteconomic environment,” Hede Crescent has more than 5,000 creditors, accordinfg to its filing. Its asset are estimated at morethan $1 billion. The locaol projects listed in the Chapter 11 filing include Piedmont Row and The Sanctuart atLake Wylie.
Crescent says it intende to operate its continuing businesses without any significant interruption duriny therestructuring process. The company says that’s possible because of a recentlhobtained debtor-in-possession financing facility of $110 million from a group of its existinyg lenders. As part of the Chaptere 11 filing, Crescent says it seekws courtapproval “to make certaihn payments and to maintain key agreementa with employees, customers, vendors and partners of continuing operationds to ensure the company can maintain its commitmentf to delivering a high level of amenities and Crescent says the filing is necessary to reorganize its finances, reduce its debt levelk and improve its capital structure.
“We intenr to reach an agreement on our new capital structure and emergew frombankruptcy quickly,” Hede says. The Chapter 11 petitionss were filed inthe U.S. Bankruptcy Court in the Westerbn Districtof Texas, Austin division. The company has 120 days from the filinb date to submit areorganizatiom plan. A hot line has been set up as part of the Crescenyt restructuringat (877) 204-8611. Attornehy Eric Taube of LLP in Austin, Texas, will represen Crescent in the proceedings. (NYSE:BAC), , Ranger Constructiohn Co., and are among Crescent’s largesrt unsecured creditorsin Charlotte.
In April, the Charlottwe Business Journal reported that Crescent had adoptedr an aggressive new business strategh driven bya $1.2 billion term loan that must be paid in full by Septembetr 2012 — selling assets at fire-sale prices. In October, Cresceny sold 4,500 acres in Berkeleu County, S.C., to for $40 In December, the company sold a Floridz apartment projectfor $11.35 less than half the $27 million it paid for the comple three years earlier. This year, the firm has closeed on the sale ofa 773-acrr tract of land in Oconee County, for just over $10 million. Crescent recently sold 18.4 acres in Fort Mill to a warehousingg companyfor $1.6 million.
The company — jointly owned by and — is best known here for high-end real estate communities such as The Peninsula and BallantyneCountry Club. Before the Chaptef 11 filing, Crescent faced payments of $50 million by the end of this $75 million in 2010 and $100 million in 2011 on its
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