NU Online News Service, Oct. 3, 6:45 p.m. – Conseco Inc., Carmel, Ind., says Gary Wendt will step down as chief executive officer but remain chairman.
Bill Shea, the company’s president and chief operating officer, will continue to be president, chief operating officer and chairman of a management-level restructuring committee, Conseco says.
“As previously announced, discussions between Conseco Inc. and its constituents continue toward what Conseco hopes to be a consensual restructuring,” Conseco says in a statement about the management change.
In the statement, Wendt describes the change as being “part of a natural evolution.”
“Our day-to-day operations are in the hands of strong, capable leaders,” Wendt says. “Our management team, and in particular our business unit leaders, are doing an exemplary job. We have great confidence in them to keep the ship on course.”
Conseco is doing business under waivers from its bankers that allow it to continue with normal operations even though it is violating financial covenants included in $4.5 billion in credit agreements.
The company reported in September that the waivers were scheduled to expire Oct. 17, and that the bankers could revoke the waivers at any time if more than half of the bankers voted to do so.