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Conseco Delays Q3 Results; on Verge of Bankruptcy
Company warns of $8 billion loss
November 19, 2002
By CHRISTY ROBINSON
|Conseco, Inc. announced it will delay filing of its third quarter results and warned of an $8 billion loss, The Wall Street Journal online reported.
The parent company of Conseco Finance, a mobile-home lender and formally Green Tree Financial Corp., said earlier this year it might seek Chapter 11 bankruptcy protection if it couldn't restructure more than $4.5 billion of holding-company debt, the publication reported.
For the second quarter, Conseco reported a net loss of $1.3 billion because of a write-down, according to an announcement. In September, the company obtained temporary bank waivers for its debt.
"Standard & Poor's believes the uncertainty created by Conseco, Inc.'s difficulties, and the fact that Conseco Finance does not enjoy regulatory protection, leaves its creditors significantly vulnerable," said Ernestine Warner, a director in Standard & Poor's Structured Finance Surveillance group.
Moody's Investor Service said last month that it's "unlikely" insurance policyholders will lose value on Conseco policies, however, according to Reuters.
Gary Wendt stepped down last month as Conseco's chief executive almost two years after joining the company to turn it around and rescue it from a big load of debt, Reuters said.
During Monday afternoon trading, Conseco, Inc. was down $0.01 at $0.07, according to CBS.MarketWatch.com. The company is headquartered in suburban Indianapolis.
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]