A Charlotte real-estate development company that has recently emerged from bankruptcy protection says in a lawsuit that its former owner, Duke Energy, brought the company to financial ruin.
Our sister paper, The Charlotte Observer, reports that a trust representing creditors of Crescent Resources is seeking nearly $1.2 billion from Duke. The creditors say Duke put Crescent into insolvency by making the company borrow $1.5 billion in 2006 at a time that Crescent was forecasting a 35-percent decline in real-estate sales.
The lawsuit by Crescent's creditors, mostly banks, alleges that more than 1,000 creditors "were the victims of Duke’s greed and its improper, ill-conceived and grossly over-leveraged distribution scheme.”
Duke Energy denies the allegations and says it will vigorously defend itself. For more details on the suit, click here.
Charlotte-based Duke is the state's biggest electric utility with 1.8 million customers in the state, including more than 160,000 in Durham, Chapel Hill and other parts of the Triangle.