Conseco on the Brink of Bankruptcy
After months of struggle Indiana-based Conseco Inc. has finally uttered the "B" word with an acknowledgment that unless it can complete an orderly reorganization, it may seek bankruptcy protection.
According to an AP article, a company official stated that "If it is unable to achieve restructuring out of court, the company may use Chapter 11 to achieve that goal."
The statement accompanied revelations that Conseco had piled up a $1.3 billion loss in the second quarter and was being investigated by federal authorities over its accounting practices. Its shares, which did not trade yesterday, are currently valued at 34 cents, and its market capitalization has sunk to $117.6 million.
In fact it looks less and less likely that CEO Gary Wendt, who took over from company founder Stephen Hilbert in April 2000, can achieve his rescue plans without resorting to some form of court protection.
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