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Crescent Resources has Filed for Bankruptcy


monsoon

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Crescent Resources, the subsidiary that Duke Energy set up years ago has filed for Chapter 11 bankruptcy. This is the company that developed the coastlines of Lake Norman, Lake Wylie, Lake Hickory, Wateree, and so for plus they were the land developers for the IKEA development and many other similar projects in the Charlotte area. The company is based in Charlotte. Actually Duke doesn't own Crescent outright anymore. They sold part of it to Morgan Stanley, another troubled firm.

The reason for the bankruptcy is of course the crumbling economy. Crescent has been involved in the endless building of McMansion developments. It's a further statement on the folly of industry based on the unsustainable constant rise of real estate prices. Seems that all of the MBAs in the world didn't figure out this might not work.

They are located downtown at 400 South Tryon Street, however they operate in 10 states.

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^No argument from me on that, but keep in mind they are also developing TOD stuff on the Lynx line. I guess that isn't working out for them either. From what I can determine they have a 100 employees. Not sure if all of them are housed in downtown. However they apparently are going to keep operating for now. This is just a move so their creditors get screwed. This could also include constructions firms, land owners, maybe some home owners, etc.

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By going Chapter 11, how they operate will be under the control of the court now. If you were a contractor and was extending them a lot of credit in terms of paying people to work on the projects and buying materials, you stand the risk of losing it all. It's not good for anyone doing business with them to build projects.

The case BTW will be decided by a bankruptcy judge in Austin TX.

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Exactly. This is why I said that any vendor who has not been paid up front will walk from the job until the court decides how the $1.5B in debt they have, will be settled. It was claimed they are operating normally. This isn't normal operation and it sucks for everyone concerned. This includes people who gave them deposits to have homes built to the people doing the work, etc etc.
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