Crescent Resources likely to emerge from bankruptcy in June

A bankruptcy judge approved Crescent Resources' reorganization plan, meaning the developer will be able to exit bankruptcy in early June.

The company will have shed more than $1 billion in debt from its balance sheet and will have access to $150 million in exit financing, the company said Monday.

Unsecured creditors, who opposed the plan, stand to lose as much as $428 million under the

agreement.

They will receive an interest in an insolvent trust fund.

Crescent filed for Chapter 11 bankruptcy protection June 10.

The filing marked a stunning fall in fortunes for a company that a decade ago was one of Duke Energy's most profitable subsidiaries. Crescent listed more than $1 billion in both assets and debt in Chapter 11 petitions filed in Austin, Texas.

The company and 120 subsidiaries sought protection from as many as 10,000 creditors.

The 30 largest unsecured creditors are owed about $26.3 million, according to the court documents. Bank of America is the biggest with a claim of $13.6 million.

Crescent developed products ranging from upscale communities to shopping centers to industrial parks, including Palmetto Bluff and Oldfield.

Duke Energy, which owns 49 percent of Crescent in a joint venture with Morgan Stanley Real Estate Funds, was not among those lenders.