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Crescent Resources files for bankruptcy

http://66.225.205.104/LM20090610.mp3

Crescent Resources, one of the top developers in the Charlotte area and the Southeast, has filed for bankruptcy and its CEO has stepped down. Crescent Resources says a slow real estate market has pushed the company to seek bankruptcy protection. The developer owns commercial and residential property in ten states. Many of those regions saw property values boom and then drop steeply. Three years ago, Crescent Resources was wholly owned by Duke Energy. The utility's spokesman, Tom Williams, says Duke sold nearly half of it to Morgan Stanley Real Estate while Crescent was still in good shape. "At this point, we're glad we sold half. In '08 we took losses on it and basically we have a basis of zero in Crescent Resources today," says Williams. "So we're not affected by the bankruptcy at all." Crescent Resources says some of its projects may be affected by the bankruptcy filing, but hopes to continue ongoing operations without any interruptions. The company says the bankruptcy is primarily a way to restructure its debt. CEO Arthur Fields has stepped down.