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Crescent Resources, LLC is a leader in real estate markets throughout southeastern and southwestern United States, establishing a wide range of developments from commercial properties to award-winning residential communities.

Crescent News

CRESCENT RESOURCES CONFIRMS ITS PLAN OF REORGANIZATION AND EXPECTS TO EMERGE FROM CHAPTER 11 WITHIN WEEKS

Company to Emerge with Significantly Strengthened Capital Structure
Company Receives Commitment for $150 Million in Exit Financing
Plan Overwhelmingly Supported by Voting Creditors

CHARLOTTE, N.C. – May 24, 2010 – Crescent Resources today announced that it has received approval from the Bankruptcy Court of its Plan of Reorganization, positioning the company to exit bankruptcy in early June.

Upon emergence, Crescent will have a significantly improved capital structure, having eliminated over $1 billion of debt from its balance sheet through the restructuring process. In addition, Crescent has secured $150 million in exit financing from a group of lenders led by UBS and Aladdin Capital, the proceeds of which will refinance the company’s outstanding Debtor-in-Possession borrowings, fund exit costs and provide working capital for the company’s operations.

Andrew Hede, Chief Executive Officer and Chief Restructuring Officer of Crescent Resources said, “We are very excited about the Court’s confirmation of the plan, which effectively marks the conclusion of the restructuring process and a new beginning for Crescent Resources. We will emerge as a stronger company with less debt and greater financial flexibility, and we are very excited about the future. We have a solid underlying business model with many very attractive assets. We have a highly experienced team with strong relationships and industry-leading partners. And, importantly, we are well positioned to capitalize on the improving economic and industry environment.”

Hede continued, “I want to thank our customers, business partners and vendors for their cooperation and understanding as we completed the restructuring process. Most importantly, I want to thank our dedicated employees, whose continued hard work allowed us to move through this quickly and successfully while delivering the highest level of service to our customers.”
Significant terms of the Plan of Reorganization include:

  • Holders of prepetition secured debt will receive a combination of reinstated debt and 100% of the equity of the reorganized company.
  • General unsecured creditors of the company shall receive an interest in a litigation trust to be formed as part of the Plan.
  • Various project level lenders shall have their existing debt reinstated.

Crescent Resources, LLC filed for protection under Chapter 11 of the U.S. Bankruptcy Court in the Western District of Texas, Austin Division on June 10, 2009. Crescent filed its plan of reorganization on January 29, 2010.

About Crescent Resources
Crescent Resources, LLC, is a land management and real estate development company with interests in 10 states in the southeastern and southwestern United States. Based in Charlotte and established in 1969, Crescent Resources creates mixed-use developments, award-winning country club communities, single-family neighborhoods, apartment and condominium communities, Class A office space, business and industrial parks and shopping centers. Visit www.crescent- resources.com for more information.

Media Contacts
Chuck Burgess/Lex Suvanto
The Abernathy MacGregor Group
Ph: (212) 371-5999
Email: clb@abmac.com/lex@abmac.com