NU Online News Service, Dec. 18, 2:43 a.m. – Conseco Inc., Carmel, Ind., says it has negotiated an agreement with its lenders and filed for protection from creditors under Chapter 11 of the U.S. Bankruptcy Code in the bankruptcy court for northern Illinois.
Although Conseco Inc., the parent company, and some entities related to Conseco’s consumer finance unit have filed for protection, the company’s insurance companies are not included in the filing, Conseco says.
“While negotiating with its major creditor constituents, the company has worked closely with state insurance regulators,” Conseco says in the press release announcing the bankruptcy filing. “The company believes the insurance subsidiaries are adequately capitalized, and that policyholders will not be affected by the parent company restructuring.”
Chapter 11 gives companies a chance to reorganize their operations.
Conseco has reached an “agreement in principle” on a strategy for restructuring its capital with its bankers and bondholders, the company says.
Conseco says it has also reached an agreement to sell the consumer finance unit to an outside investment group
The Conseco press release is on the Web at http://www.conseco.com/cnc/cda/content/about_conseco_fd/0,1126,21%252D0,00.html