Crescent files Chapter 11, replaces CEO - San Francisco Business Times:

steinberg-virus.blogspot.com
The moves are part of an effort to cutthe company’s debt and rework its capital structures, the N.C.-based developer says. and some of its subsidiariexs have filed voluntary Chapter 11 petitionxs in the in the Western District of Austin Division. Crescent also announcex today thatArthur Fields, the company’s chierf executive officer, has retired, effective immediately. He will continu e to work in anadvisory capacity. Crescent had been strugglinv to refinancea $1.2 billion loan, with paymentr due in full by September 2012. The companyg amended the loan in June 2008 because it was in violatiobn of theoriginal terms.
Before the Chaptert 11 filing, Crescent faced paymentws of $50 million by the end of this year, $75 million in 2010 and $100 million in 2011 on its The company, which has developedx more than 1 million square feet of office spacew in Cool Springs since the has been facinglocao troubles, too. Pat Emery, Crescent’s long-timwe vice president and regional manager in left the companylast month. And the developer’s Crescent’s Greenwah One, a $33 million, 168,000-square-foot buildingg near completion onCarothers Parkway, has been boarded up for monthes as contractors filed millions of dollars in lienz against it.
Another similarly sized Cresceny project next to it is about 90 percent vacanf a year after being The company says it plans to continue businessesz without any significant interruptionduring restructuring. Crescent has obtained a debtor-in-possession financing facilit of $110 million from a group of itsexistingg lenders, which will provide fundsx so it can continu e operating. Andrew Hede will replace Fieldz as CEO and will be chargedc with leadingthe restructuring. Hede, a managinb director with LLC, has more than 15 yearss of financial restructuring andbusiness experience.
“We have been in activwe discussions with our lenders and other stakeholdersw as we work toward an agreement that will bring our capitalk structure in line with the currenteconomic environment,” Hede says in a “Those discussions are continuing, and we are pleased with the ongoingv support we have received from our lenders. We intend to reacgh an agreement on our new capital structurde and emerge frombankruptcy quickly.
”