Crescent Resources files plan of reorganization

CHARLOTTE, N.C. - Crescent Resources announced that the company and certain of its subsidiaries have filed a Plan of Reorganization 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 million-$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.”

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.