Creditors: No bonuses at Crescent Resources
Crescent Resources, parent of Palm Coast’s second largest real estate developer, wants bankruptcy court to OK incentives; creditors object.
Palm Coast, FL – March 2, 2010 – The parent of LandMar Group, Palm Coast, Florida’s second largest real estate developer has asked for the approval of $4 million for employee bonuses while under bankruptcy protection.
By Bruce Henderson: Charlotte Observer
Creditors of Crescent Resources are fighting the company’s plan to give bonuses to its employees while under bankruptcy protection.
The Charlotte-based development company wants the bankruptcy court’s blessing to create a $4 million incentive bonus pool, at least $3.5 million of which would go to management employees. The court hearing the case in Austin, Texas, has not ruled.
Unsecured creditors who stand to lose $428 million under Crescent’s reorganization plan hotly objected in a court filing. Those creditors expect to recover nothing but proceeds of an insolvent trust fund, a creditors’ committee said in court papers.
The committee charged that Crescent intentionally misrepresented the book value of its assets at $2.2 billion when it filed for Chapter 11 protection last summer. The company’s recent filings put the market value of its assets at $640 million.
"No explanation is given for the cataclysmic decline in Debtor’s representations of asset values from June 2009 to January 2010," the committee said, "but the Debtors are asking the court to award a bonus to the employees of the Debtors for their excellent work."
Asked if the committee is claiming illegal activity over Crescent’s asset estimates, attorney Joseph Martinec of Austin said, "It’s a matter that is under investigation by the committee."
Read: <Complete source story>
Toby’s Commentary: A piece yesterday by Bill Rochelle (Bloomberg.com) states that the creditors committee has yet to show any support for the reorganization plan filed by Crescent Resources LLC. This reorganization may not go as smothly as earlier thought.
I saw that when looking at Grand Haven
When they stated the Grand Haven Golf Course with all land and improvements was worth $2.6 Million, and knowing the Flagler county appraiser’s valuation was $5.5 million, I knew something was way off. I bet now the courts will be sending out indictments against the individuals that did the appraisals.
The bonus money should be attached by the courts, for new appraisal.
This sounds like Duke Energy is in a heap of trouble.
I would think
that Crescent has sold alot of their holdings since filing for Bankruptsy protection – hence the difference in their current assests dollar value – as for the Grand Haven Golf Course – of course the orginal appraised value was way too high due to the current economy – look at the values of any other Golf Course in Florida or anywhere for that matter and you will probably see the same decline if not more…