I just received a copy of a letter written by the Chief Executive Officer for Crescent Resources addressing the bankruptcy. I have cut and pasted the contents of that letter below:
“June 9, 2009
As you may know, the real estate industry has faced unprecedented economic challenges in the last year. Crescent Resources is no exception. In this environment, we have been working over the last several months to strengthen the company’s financial position and improve our ability to continue to provide the high level of services for which we are known.
As a part of this, Crescent Resources, LLC and certain of its subsidiaries have filed voluntary Chapter 11 petitions in the U.S. Bankruptcy Court in the Western District of Texas, Austin Division. This step will allow us to bring our capital structure in line with the current economic environment and will provide significantly improved resources and financial flexibility going forward.
Importantly, we have secured $110 million in new financing to fund our business activities through this process.
At Crescent, we know that the value of our communities is directly impacted by the quality of the clubs and recreational infrastructure we have created. It is our goal to continue to work to enhance value by maintaining the high level of service that we have established.
We have many very attractive assets, a highly experienced team and strong relationships with industry-leading partners. Our focus remains on doing what we do best – to create, manage and sell first-class developments, communities and real estate.
Sincerely,
Andrew Hede
Chief Executive Officer”
Furthermore, the broker for Portland Place has assured us that the bankruptcy will not adversely affect transactions at the midrise condo building other than possibly slowing negotiations and contract acceptance minimally. He also stated that the bankruptcy will not affected the developers approach to prices. Will Daly
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