Chicago Bankruptcy Judge Carol A. Doyle, who is supervising the Chapter 11 reorganization proceedings of Indiana-based Conseco, Inc., has give approval to a plan to auction off the company’s financial subsidiary, Conseco Finance Corp., to the highest bidder.
Prior to its bankruptcy filing, Conseco had agreed to sell the money losing division, which mainly finances the purchase of mobile homes, to a New York based joint venture partnership, headed by Fortress Investment Group and J.C. Flowers & Co., for an estimated $1 billion.
The judge’s decision to reopen the bidding for Conseco Finance raises the possibility that a higher price could be obtained for the unit. That would bring in more funds to help Conseco satisfy its outstanding debt claims of around $6.5 billion.
The ruling calls for the original bidders to finalize their offer by February 16. Other interested parties would have until the 24th to submit their bids, and an auction, open to all bidders would be held on the 28th. Judge Doyle would have final approval of the sale, and has indicated a ruling would be made by March 5.
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