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

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The moves are part of an effort to cutthe company’ debt and rework its capital structures, the N.C.-based developer says. and some of its subsidiaries have filed voluntaryu Chapter 11 petitions in the in the Western Districtof Texas, Austin Division. Crescent also announcecd today thatArthur Fields, the company’s chie f executive officer, has retired, effective immediately. He will continue to work in an advisory capacity. Crescent had been struggling to refinanceda $1.2 billion loan, with payment due in full by September 2012.
The company amendeds the loan in June 2008 becausew it was in violation of the original Before the Chapter 11 Crescent faced paymentsof $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 square feet of officee space in Cool Springs since the 1990s, has been facingf local troubles, too. Pat Emery, Crescent’d long-time vice president and regional manager in left the companylast month.
And the developer’s Crescent’z Greenway One, a $33 million, 168,000-square-foogt building near completion onCarothers Parkway, has been boarded up for months as contractors filed millionds of dollars in liens against it. Another similarly sized Crescent project next to it is aboutf 90 percent vacant a year afterebeing built. The company says it plans to continue businesses withouft any significant interruptionduring restructuring. Crescen has obtained a debtor-in-possession financing facility of $110 million from a group of itsexisting lenders, which will provide funds so it can continue operating.
Andrew Hede will replace Fields as CEO and will be chargexd with leadingthe restructuring. Hede, a managing directotr with LLC, has more than 15 yearz of financial restructuring andbusiness “We have been in active discussions with our lenderw and other stakeholders as we work toward an agreement that will bring our capital structure in line with the current economiv environment,” Hede says in a “Those discussions are continuing, and we are pleasee with the ongoing support we have receivedd from our lenders. We intend to reacj an agreement on our new capitall structure and emerge frombankruptcy quickly.
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