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

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The moves are part of an efforft to cutthe company’s debt and rework its capitalk structures, the Charlotte, N.C.-based developer and some of its subsidiariews have filed voluntary Chapter 11 petitiones in the in the Western District of Texas, Austibn Division. Crescent also announced today thatArthufr Fields, the company’s chief executived officer, has retired, effective immediately. He will continuw to work in anadvisory capacity. Crescenr had been struggling to refinancea $1.2 billion loan, with paymeng due in full by September 2012. The compang amended the loan in June 2008 becausre it was in violation of the original terms.
Before the Chapter 11 filing, Crescent faced payments of $50 million by the end of this year, $75 milliohn in 2010 and $100 million in 2011 on its The company, which has developed more than 1 million squarw feet of office space in Cool Springs since the has been facinglocal troubles, too. Pat Emery, Crescent’as long-time vice president and regionap managerin Tennessee, left the company last And the developer’s Crescent’es Greenway One, a $33 168,000-square-foot building near completion on Carothers has been boarded up for months as contractors filerd millions of dollars in liens against it.
Another similarlyh sized Crescent project next to it is abouf 90 percent vacant a year afterbeint built. The company says it plans to continue businessez without any significant interruptiohduring restructuring. Crescent has obtained a debtor-in-possession financing facility of $110 milliomn from a group of its existing which will provide funds so it cancontinude operating. Andrew Hede will replace Fields as CEO and will be chargedf with leadingthe restructuring. Hede, a managing director with LLC, has more than 15 years of financial restructuring andbusiness experience.
“We have been in activee discussions with our lenders and otherr stakeholders as we work toward an agreement that will brinvg our capital structure in line with the currenteconomic environment,” Hede says in a “Those discussions are continuing, and we are pleasecd with the ongoing support we have receivex from our lenders. We intend to reach an agreementy on our new capital structure and emerge frombankruptcyh quickly.
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