Conseco Sells Former Green Tree Finance Unit For $1 Billion
Conseco Inc., Carmel, Indianapolis, has sold its finance subsidiary, Conseco Finance Corp., in a Chapter 11 sale that culminated March 5 in a winning bid of $1 billion.
Upon emergence from Chapter 11, Conseco will be engaged exclusively in the insurance business, the company says.
In 1998, Conseco bought Green Tree Financial Corp., Minneapolis, which became Conseco Finance, for $6 billion.
The proceeds from the sale of its finance unit are expected to be used to satisfy the creditors of Conseco Finance Corp., the company says.
Conseco announced recently that it filed its Joint Plan of Reorganization and Disclosure Statement with the Bankruptcy Court.
Conseco President and Chief Executive Officer William J. Shea said that following approval of the disclosure statement by the court, Conseco will commence the solicitation of votes of its creditors for the approval of its Plan of Reorganization.
“We have worked very hard with certain key creditor constituencies to develop a plan that will provide the reorganized Conseco with a capital structure that can be supported by cash flows from ongoing operations,” Shea said in a statement.
Under the terms of the proposed plan, which the company says is consistent with the agreement in principle announced on Dec. 18, 2002, CNC will substantially reduce its debt and future annual interest expense.
Reproduced from National Underwriter Edition, March 10, 2003. Copyright 2003 by The National Underwriter Company in the serial publication. All rights reserved. Copyright in this article as an independent work may be held by the author.