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September 16, 2003 at 08:00 PM
NU Online News Service, Sept. 16, 2003, 6:30 p.m. EDT – Conseco Inc., Carmel, Ind., says the reorganization plan for its former Conseco Finance consumer finance subsidiary took effect at 4 p.m. Monday.
The U.S. bankruptcy court in Chicago also has approved a reorganization plan for the parent company.
Conseco has been reorganizing itself as a company that will sell life insurance, annuities and supplemental health insurance products. The company is about to emerge from Chapter 11 reorganization proceedings with $3.9 billion in capital, including $1.3 billion in bank debt, $860 million in preferred stock and about $1.7 billion in equity.
Moody’s Investors Service, New York, has reacted by placing the B3 insurance financial strength ratings of most Conseco Inc. insurance subsidiaries on review for possible upgrade.
The parent company will have to “execute its strategy on a consistent basis” to meet its obligations and avoid violating bank covenants dealing with its financial condition, but the quality of its investment portfolio has improved and annuity surrender activity has declined, Moody’s says.
