Crescent Resources LLC. Bankruptcy Administration

Why did Crescent elect to reorganize under Chapter 11?
Why now?
How long will this process last?
What will change about the business? How will you continue to operate while you are in Chapter 11 - and will you have the cash you need to operate?
When will we get paid?
Why should I sell to you now?
We need to renegotiate our terms with you.
Can I take back the equipment/products I provided to you before the filing?
How do we file a proof of claim with the Court?
Where did you file?
Whom may I contact if I have additional questions?

The real estate industry has experienced unprecedented economic challenges. We are seeing fewer real estate transactions and lower prices.
We have determined that the prudent and realistic response is to take steps, now, to right-size both our capital structure and our business.
The Chapter 11 process gives us the best way to take the next step in reaching agreements with our lenders and owners that will put our capital structure in line with the current economic environment while building on our solid business model and our portfolio of very attractive assets.
Our goal is to emerge from Chapter 11 with a strong financial foundation for the company and its stakeholders so that we will be much better positioned to serve our customers and partners over the longer term.

We’ve been engaged in discussions with lenders for a number of months, knowing we had to right-size our capital structure and business for the current economic environment.
It’s time to put the uncertainty behind us so that it doesn’t become a distraction for our residents, employees or partners.
We look forward to proceeding through the process and reaching agreement on a reorganization plan quickly.
The Chapter 11 process is a tool that will help us right size our balance sheet and business and we wanted to get started on that process as soon as possible.

We are committed to taking the appropriate steps to reach an agreement on a new capital structure so we can emerge from Chapter 11 protection quickly.

Our ongoing operations will continue without any significant interruption during this process. We intend to maintain the high level of service and amenities our residents and customers have come to expect from Crescent.
We have attractive assets and a solid underlying business model, and we expect to emerge from this process with a right-sized capital structure and business that is in line with current economic conditions.
Our DIP financing of $110 million gives us cash to fund our ongoing operations.
- The decision to commit new financing by several of our existing lenders demonstrates their continuing confidence in the future of the company.
We are seeking Court approval to maintain key agreements with employees, customers, vendors and partners of continuing operations.
By right-sizing the organization and capital structure, Crescent will be much better positioned to serve its customers and partners over the long term.

For materials, equipment and services you provide after the Chapter 11 filing, you will be paid in the ordinary course of business. We will be under Court supervision, and the law grants “priority administrative expense status” to all purchases we make while under Chapter 11. In other words, for services you provide today and in the future, you will be paid in much the same way as you were paid in the past.
For outstanding claims incurred before the date of the filing, you must file your claim with the Court. Under Court supervision, the company and creditors will determine how the claims will be satisfied when the company emerges from Chapter 11.
You may access a claim form at www.crescent-resourcesinfo.com.

A group of our lenders has committed $110 million in funds that will be sufficient to operate our ongoing business during the restructuring period.
The decision to commit new financing from several of our existing lenders demonstrates their continuing confidence in the future of the company.
In addition, orders placed post-petition in the normal course of business receive a priority administrative status by the Court, so you will be paid in accordance with the terms of our agreement with you – by law.

With $110 million in additional funds from our lenders, and with the assurance from the Court that you will be paid for goods and services delivered going forward, we think it’s in our mutual interest to continue to do business together. We need to keep our regular terms.

We are now protected by an “automatic stay.” This prevents creditors from pursuing amounts owed to them before the filing. It also means that any equipment or products we have received before the Chapter 11 filing cannot be reclaimed without the Court’s approval of a reclamation notice. Failure to follow proper procedure could result in Court-ordered penalties for violating the automatic stay.

The company will prepare a list of its creditors as part of the Chapter 11 case.
We anticipate that within 30-60 days of the filing, we will prepare and distribute a motion establishing a deadline for submitting your “proof of claim,” which will include a copy of the proof of claim form.
Alternatively, you may get a copy of the proof of claim form from our claims website at www.crescent-resourcesinfo.com.

The petition was filed in the U.S. Bankruptcy Court for the Western District of Texas, Austin Division.
Electronic copies of filed petitions and signed orders will be available at www.crescent-resourcesinfo.com.
Information about the case is also available on our web site by going to the www.crescent-resources.com, or by going to www.crescent-resourcesinfo.com.

You may check the company’s Chapter 11 web site available at www.crescent-resourcesinfo. com, or you may contact any of the materials division administrators.

www.crescent-resourcesinfo.com