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

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The moves are part of an effor to cutthe company’s debt and reworkl its capital structures, the Charlotte, N.C.-based developer says. and some of its subsidiaries have files voluntary Chapter 11 petitions in the in the Western Districgof Texas, Austin Division. Crescent also announcexd today thatArthur Fields, the company’as chief executive officer, has effective immediately. He will continue to work in anadvisorty capacity. Crescent had been struggling to refinancea $1.2 billiomn loan, with payment due in full by September 2012. The companhy amended the loan in June 2008 because it was in violation of theoriginal terms.
Before the Chapter 11 filing, Crescent facecd payments of $50 million by the end of this $75 million in 2010 and $100 million in 2011 on its The company, which has developed more than 1 million squarse feet of office space in Cool Springs sincedthe 1990s, has been facinb local troubles, too. Pat Emery, Crescent’a long-time vice president and regional managertin Tennessee, left the compan last month. And the developer’s Crescent’s Greenway One, a $33 168,000-square-foot building near completion on Carothers has been boarded up for months as contractorsz filed millions of dollars in liensagainst it.
Anotherr similarly sized Crescent project next to it is about 90 percen vacant a year afterbeing built. The companyg says it plans to continue businesses withouft any significant interruptionduring restructuring. Crescent has obtaineds a debtor-in-possession financing facility of $110 million from a grouop of itsexisting lenders, which will provide funds so it can continue operating. Andrew Hede will replace Fieldse as CEO and will be charged with leadinbgthe restructuring. Hede, a managing director with LLC, has more than 15 yearsw of financial restructuring andbusiness experience.
“We have been in activse discussions with our lenders and other stakeholderes as we work toward an agreement that will bring our capital structuree in line with the currenteconomi environment,” Hede says in a “Those discussions are continuing, and we are please with the ongoing support we have received from our We intend to reach an agreemenr on our new capital structuree and emerge from bankruptcy quickly.
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