home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News


Mortgage News

HOT Topics









site map

twitter linkedin
facebook google+

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from MortgageDaily.com.

Mortgage News Reprints
Put entire MortgageDaily.com stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed MortgageDaily.com stories free on your Web site or for your RSS reader.

News Archives
Archive of MortgageDaily.com stories by month going back to 1999.

Press Releases
Reports and announcements from MortgageDaily.com.

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

Corporate Mortgage News
M e r g e r s, a c q u i s i t i o n s and private and public offerings. Other corporate activity including executive appointments, bankruptcies name changes.

Conseco Bankruptcy Among Largest in U.S. History

Finance unit to be sold

December 19, 2002


After four years of heavy losses and deep debt, Conseco, Inc. filed chapter 11 bankruptcy Tuesday night, and its finance unit has entered an agreement to sell its assets, according to federal court documents.

The filing is hardly a surprise within the mortgage industry, with the company's decline being played out in its quarterly earnings reports. In the past several months, mentions of imminent reorganization has dominated press about Conseco.

In terms of assets, the filing would be among the largest in U.S. corporate history, behind WorldCom Inc.'s $107 billion and Enron Corp.'s $63.4 billion, according to the Wall Street Journal online.

Conseco listed $52.2 billion in assets as of Sept. 30.

The list of debtors included in the filing are CIHC Incorporated, CTIHC, Inc., Partners Health Group, Inc., Conseco Finance Corp., and Conseco Finance Servicing Corp., according to Bankruptcy Management Corporation.

In addition to the filing, Conseco's finance unit announced that it has reached an agreement in principle to sell its assets and operations to CFN Investment Holdings LLC. The proposed purchase price would be equal to the outstanding amount of the finance unit's secured debt as of the closing date, subject to adjustment.

Conseco's finance leg is the largest originator of manufactured housing loans and also originates home equity mortgages, home improvement loans, and private label credit cards, according to Bankruptcy Creditors' Inc.

CEO William J. Shea said the company has achieved a major step toward what it set out to do in August, and the agreement in principle should significantly speed up the restructuring process.

Conseco's woes began in when it acquired Green Tree Financial Corp., the predecessor of Conseco Finance, in 1998 -- just before the subprime bubble triggered by Russian bond defaults burst. The $6.44 billion price tag became a cinderblock, sinking Conseco fast.

Conseco's first quarter operating earnings this year were $39.9 million, which then took a major tumble to $1.3 million during the second quarter after a write-down. The company delayed filing its third quarter earnings, which ended up as a $1.77 billion loss because of asset charges.

Conseco obtained temporary bank waivers from its senior lenders in September. Moody's Investors Service cut Conseco's already low junk senior debt rating the following month, in addition to stating that it expected Conseco to seek prepackaged bankruptcy reorganization.

Conseco's shares have been delisted from the New York Stock Exchange, and the company faces investigations by the Securities and Exchange Commission and the Alabama Securities Commission, the Wall Street Journal online said.

Conseco's insurance companies Conseco Services, LLC and Conseco Capital Management are separate legal entities and were not included in the filings and would continue to honor obligations to policyholders, Conseco announced.

Christy Robinson is the editor of MortgageDaily.com. She received a bachelor's degree in news-editorial journalism from The University of Texas at Arlington. Her work has previously been published in The Dallas Morning News.

email Christy at: [email protected]

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter


mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders