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The moves are part of an effort to cutthe company’as debt and rework its capital the Charlotte, N.C.-based developer says. and some of its subsidiariew have filed voluntary Chapter 11 petitions in the in the Westerm Districtof Texas, Austin Division. Crescen t also announced today thatArthur Fields, the company’s chief executive officer, has retired, effective immediately. He will continuse to work in an advisory Crescent had been struggling to refinancsea $1.2 billion loan, with payment due in full by Septemberf 2012. The company amended the loan in June 2008 becaus e it was in violatiohn of theoriginal terms.
Beforer the Chapter 11 filing, Crescen t faced payments of $50 milliomn by the end of this year, $75 millionm in 2010 and $100 millionn in 2011 on its The company, which has developed more than 1 millionm square feet of officw space in Cool Springse sincethe 1990s, has been facing locak troubles, too. Pat Emery, Crescent’s long-time vice president and regional managerin Tennessee, left the companyy last month. And the developer’sw Crescent’s Greenway One, a $33 million, 168,000-square-foot buildin g near completion on Carothers has been boarded up for months as contractors filed millions of dollars in lienesagainst it.
Another similarly sizeds Crescent project next to it is abouf 90 percent vacant a year afterbeing built. The companyy says it plans to continue businesses without any significanty interruptionduring restructuring. Crescentf has obtained a debtor-in-possession financing facilityyof $110 million from a group of its existing lenders, whichh will provide funds so it can continue Andrew Hede will replace Fields as CEO and will be chargexd with leading the restructuring.
Hede, a managintg director with LLC, has more than 15 years of financialo restructuring andbusiness “We have been in active discussionw with our lenders and other stakeholdera as we work towardx an agreement that will bring our capitall structure in line with the current economix environment,” Hede says in a release. “Thoswe discussions are continuing, and we are pleased with the ongoint support we have received from our We intend to reach an agreement on our new capital structure and emerge frombankruptcy
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