|A major lender in the mobile home market has announced that it will miss a bond payment and seeks a capital restructuring.
Conseco, Inc., a provider of insurance, investment and lending products, announced that it will exercise a 30-day grace period on upcoming bond interest payments. The company's board of directors met several times over the past two weeks to consider various financial options available.
Conseco's chief executive officer (CEO), Gary Wendt said, "radical change in the company's capital structure" is required, as one rating agency called for last week.
The Carmel, Indiana company has engaged Lazard Freres & Co. and Kirkland & Ellis to help it through a capital restructuring, which will not involve any operating subsidiaries.
The company says it is comfortable that it will have "more than ample liquidity to operate our businesses throughout this restructuring period."
Conseco's CEO and chief financial officer are among those required to certifiy the financial statements of the companies they head by the Securities and Exchange Commission.
Last September, Conseco was accused by TheStreet.com of using lax lending practices to hide bad loans.