Phipps Tower developer files for bankruptcy

Hede, in a statement, said the company intends to emerge from bankruptcy quickly.

"Despite the unprecedented challenges facing the real estate industry, we believe Crescent's underlying business model is solid and our assets remain very attractive," said Hede, a managing director with Alvarez & Marsal North America LLC. He has more than 15 years of financial restructuring and business experience.

Crescent has projects in 10 states in the Southwest and Southeast. The $175 million Phipps Tower is scheduled to be completed by spring 2010, according to the lender, Manulife Financial, Canada's third largest public company.

Manulife vice president Tina Acranis reaffirmed Wednesday that Manulife is "committed to the completion of Phipps Tower" which is held as a separately capitalized entity, Phipps Tower Associates LLC.

Other Crescent projects in metro Atlanta include Satellite Place near Gwinnett Mall, Crescent Ridge in Cobb County, Corporate Centre at Deerfield, Riverside on the Chattahoochee River, Sugarloaf Country Club in Duluth and the River Club in Suwanee.

Crescent will continue business without any significant interruption during the restructuring process, the company said in a statement. Crescent said it obtained a $110 million loan from its existing creditors to operate its ongoing business activities.

The once profitable company is suffering from the fallout in the real estate industry. In 2008, Crescent reported a net loss of $420 million, compared with a net income of $76 million the year before. Crescent said last month that bankruptcy was an option as it struggled to deal with $1.4 billion in debt.