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Tuesday, September 10, 2002|
Conseco Wins Reprieve
Conseco has slipped the hangman's noose, at least for now. The firm negotiated a temporary waiver of cross-default provisions with its bankers.
The provisions were tripped by the increase in Conseco's debt-to-capitalization ratio and could have resulted in immediate demands for payment by the creditors.
The new waivers will expire on October 17 and can be revoked at any time if more than half of the banks vote in favor.
Conseco technically defaulted on the bank loans on September 8 when it failed to make an interested payment due August 9.
Although the Conseco's primary business is insurance, it is also the sponsor of a fund family.
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