Arthur Fields, the company's CEO, has retired from the company and will continue to work in an advisory role. Andrew Hede, its restructuring officer and managing director with Alvarez & Marsal North America,, will take on additional duties as Crescent CEO.
Crescent plans to continue operating with no significant interruption during its corporate restructuring. The company also says it has obtained debtor-in-possession financing of $110 million from a group of its existing lenders, providing sufficient funds to operate ongoing business activities.
"We have been in active discussions with our lenders and other stakeholders as we work toward an agreement that will bring our capital structure in line with the current economic environment," Hede stated in a release. "Those discussions are continuing and we are pleased with the ongoing support we have received from our lenders. We believe this process will lead to a stronger financial foundation for the company and its stakeholders and that it will better position us to serve our customers and partners over the longer term."
Hede added that Crescent has a solid business model and highly attractive assets. The company intends to reach an agreement on its new capital structure and emerge from bankruptcy quickly, he said.
"I am confident that this restructuring will position the company better for the future," Fields said in prepared remarks. "It has been a privilege to work with such a talented team."
Crescent is a joint venture between Duke Energy Corp. and Morgan Stanley Real Estate Funds. It has interests in 10 states in the Southeast and Southwest touching on mixed-use, multifamily, office, industrial and retail development.
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