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Crescent Resources, LLC is a leader in real estate markets throughout southeastern and southwestern United States, establishing a wide range of developments from commercial properties to award-winning residential communities.

Crescent News

CRESCENT RESOURCES FILES PLAN OF REORGANIZATION AND EXPECTS TO EMERGE FROM BANKRUPTCY IN SECOND QUARTER 2010
Plan will Reduce Company’s Debt and Enhance Capital Structure
Supported by Significant Group of Company’s Lenders

CHARLOTTE, N.C. – January 29, 2010 – Crescent Resources today announced that the Company and certain of its subsidiaries have filed a Plan of Reorganization (the “Plan”) and Disclosure Statement with the U.S. Bankruptcy Court in the Western District of Texas, Austin Division. The Plan is supported by a significant group of the company’s pre-petition lenders.

Crescent expects to emerge from its financial restructuring with a significantly improved balance sheet and with substantially less debt. Under the terms of the Plan, the Company’s outstanding secured debt would be reduced by approximately $1 billion to $465 million. In addition, Crescent is currently soliciting proposals for an exit financing facility of approximately $125-150 million, the proceeds of which will refinance outstanding Debtor-in-Possession borrowings, fund exit costs and provide significant working capital.

Andrew Hede, Chief Executive Officer and Chief Restructuring Officer of Crescent Resources said, “The filing of our Plan of Reorganization marks the final stage in the restructuring process, and we expect to emerge from bankruptcy early in the second quarter of 2010. The plan will provide for a significantly deleveraged capital structure with greater financial flexibility to execute our business plan and operate the company long-term. We appreciate the support of our lenders, vendors, customers, employees and partners during this process.”

Hede continued, “With a restructured balance sheet, solid financial foundation and strategic focus on core and high-value assets, Crescent will emerge as a stronger company that is better positioned to compete and serve our customers. While we are beginning to see positive signs of recovery in each of our business units and each of our markets, we continue to anticipate a gradual recovery over the next 12 -18 months. The capital structure contemplated in our Plan is correctly sized for current market opportunities. I am confident we have both the financial flexibility and strategy to succeed.”

Significant terms of the Plan include: Holders of prepetition secured debt will receive a combination of reinstated debt and 100% of the equity of the reorganized company. General unsecured creditors of the company shall receive an interest in a litigation trust to be formed as part of the Plan. Various project level lenders shall have their existing debt reinstated.

Crescent Resources, LLC and certain of its subsidiaries filed for protection under Chapter 11 of the U.S. Bankruptcy Court in the Western District of Texas, Austin Division on June 10, 2009.

About Crescent Resources
Crescent Resources, LLC, is a land management and real estate development company with interests in 10 states in the southeastern and southwestern United States. Based in Charlotte, Crescent Resources is a joint venture between Duke Energy and the Morgan Stanley Real Estate Funds. Established in 1969, Crescent creates mixed-use developments, award-winning country club communities, single-family neighborhoods, apartment and condominium communities, Class A office space, business and industrial parks and shopping centers. Visit www.crescent-resources.com.com for more information.

Media Contacts
Chuck Burgess/Lex Suvanto
The Abernathy MacGregor Group
Ph: (212) 371-5999
Email: clb@abmac.com/lex@abmac.com