Crescent Resources looking to dig out of bankruptcy
The major Charlotte developer, Crescent Resources is hopeful it will emerge from bankruptcy by spring. WFAE's Simone Orendain reports: Crescent Resources has submitted a plan to a US Bankruptcy Court in Texas that would reduce its debt by about $1 billion. This would take the company's debt down to about $465 million. Crescent Chief Restructuring Officer Andrew Hede says under the plan, more than 40 creditors would carry that $465 million. "The remainder of the debt that the existing lenders would hold- they would hold 100 percent of the equity of the company. So you're right, that lender group now effectively owns the company," he says. Hede says Bank of America is one of the big lenders in the restructuring plan. Crescent Resources has developed high end properties like The Point in Lake Norman. It's trying to recover from losses during the recession, which hit the real estate sector hard. Duke Energy still technically owns slightly less than half of Crescent Resources. But Hede says once this plan is accepted, the utility will no longer be tied to the company. A judge has to approve the plan and all of the creditors have to be on board. Hede says this should take place over the next two or three months.