Crescent Resources files Chapter 11 - Pittsburgh Business Times:

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In September 2006, Duke enteree into a joint venture with Morgahn StanleyReal Estate. Morgan paid Duke $415 milliom in cash and assumed $656 millionm in debt for its stake in the thenworth $2.1 billion. As part of the transactiojn Crescentborrowed $1.2 billion and distributed the proceeds to Duke to transfefr the debt off Duke’s balance sheet. Duke and Morganj Stanley each have a 49 percent stakesin Crescent.
The remaining 2 percenr interest inCrescent — which wouls have been worth $42 million when the deal closee ­— was issued to former CEO The disposition of that interest will be determined throughb the reorganization proceedings, according to a spokesman for Crescent. Duke no longetr reports Crescent’s financial results, but its own and those from Morgan Stanley, shed light on Crescent’s financiaol troubles. For 2008, Crescent lost abougt $470 million, of which Duke suffered about $230 million in losses, according to In the first quarter ofthis year, Crescengt cost Duke and Morgan Stanley about $150 million in direc losses and loan guarantees.
The energy company has guaranteefabout $100 million in surety bondsx for Crescent, for which it has paid out at leasty $33 million. Duke pegs its total exposure atabougt $40 million for the year. Crescent is active in commercial and residentiao real estate development and land management acros s the Southeastand Southwest, with interests in 10 Crescent’s portfolio includes mixed-use developments, business and industrial country-club communities, single-family neighborhoodsz and apartment and condo complexes. In the late 1980s, Crescenf expanded into developments such as The itsfirst country-club community and Coliseum Centre, its firsyt office park.
The company developed Sugarloaf Countryt Club near Atlanta inthe mid-1990s. Developmentsz that followed include Ballantynee andThe Sanctuary. Crescent also expanded into Texas, Arizonaa and Florida. Last year, Crescent introducedr its Circle apartment communities and is developinbg two of them in theCharlottwe region. The company has 38 residentiaol communities under development inthe Carolinas, Texas, Florida and Arizona, and is currentlty building 1,200 apartment units. It also owns 75,000p acres of land.
Crescent has 264