Crescent Resources has Filed for Bankruptcy

[monsoon]

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.

[norm21499]

If Crescent shuts down it wont be a huge loss in my opinion. Good riddance to bad suburban planning if that company fails.

[monsoon]

^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.

[Charlotte_native]

I won't weep too much for a company that can't succeed when handed land taken by eminent domain for power plants and then allowed to develop it for profit.

[InitialD]

I wonder how this will affect curently under construction projects? Weren't they building Circle at Southend? We really don't need any half-built vacant structures along the light rail line.

[monsoon]

My guess is that any contractor who has not been paid up front, is going to walk.

[HopHead]

I wonder how this will affect curently under construction projects? Weren't they building Circle at Southend? We really don't need any half-built vacant structures along the light rail line.

[monsoon]

....They will operate normally while reorganizing. I doubt the Circle will be affected much at all. I think work there is going to wrap up in the next few months.

[JayGee]

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.

[monsoon]

..... It is the vendors that are already owed who stand to lose. ....

[palmetto75]

I won't weep too much for a company that can't succeed when handed land taken by eminent domain for power plants and then allowed to develop it for profit.

[monsoon]

I pretty much blame this company for ruining the coastline of Lake Norman with truly horrible development.

[kermit]

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.

[Windsurfer]

I pretty much blame this company for ruining the coastline of Lake Norman with truly horrible development.