When Conseco, Inc. reported in August 2002 a $1.33 billion quarterly loss and announced that its accounting practices were under investigation by the SEC, it was widely expected that bankruptcy would not be long in coming. And on December 18, Conseco at last did seek Chapter 11 bankruptcy protection.
The companies involved in the bankruptcy filing are two holding companies, Conseco, Inc. and the Conseco Insurance Holding Company. The insurance companies Conseco Services, LLC and Conseco Capital Management are not included in the filing, according to the company. Conseco, struggling over a load of debt built up from its purchase of Green Tree Financial in 1998, has stated that its insurance companies are sound and adequately capitalized, and that policyholders will not be affected by the parent company restructuring.