NU Online News Service, Oct. 9, 8:07 p.m. – A group of bondholders is talking to Conseco Inc., Carmel, Ind., about debt capacity, enterprise value and the need to deleverage, according to Brad Eric Scheler, a lawyer in the New York office of Fried, Frank, Harris, Shriver & Jacobson, who helps represent the bondholders.
“So far, it looks pretty good,” Scheler says. “What is clear is that [Conseco needs] to deleverage.”
Scheler says “it is definitely possible” that the bondholders could still reach an agreement with Conseco.
Because Conseco’s debt exceeds the company’s value, an agreement would, in effect, give the bondholders control over the company, Scheler says.
Conseco’s debt stood at $4.6 billion June 30, according to a filing with the U.S. Securities and Exchange Commission.