Crescent Resources Files Reorganization Plan

CHARLOTTE-Locally based Crescent Resources LLC has filed a reorganization plan in US Bankruptcy Court and expects to emerge with a significantly improved balance sheet and substantially less debt. The commercial real estate developer and land manager filed for Chapter 11 protection last summer in the court’s Austin, TX division.

Under terms of the reorganization announced Monday, Crescent’s outstanding secured debt will be reduced by approximately $1 billion, to $465 million. The company also seeks proposals for exit financing between $125 million and $150 million, with proceeds used to refinance outstanding debtor-in-possession borrowings, fund exit costs and provide significant working capital.

“We expect to emerge from bankruptcy early in the second quarter of 2010,” says Andrew Hede, Crescent CEO and chief restructuring officer. “The plan will provide for a significantly deleveraged capital structure with greater financial flexibility to execute our business plan and operate the company long term.”