Conseco has reached agreement with Lehman Brothers to amend the existing lending agreements of its Conseco Finance subsidiary. These amendments provide for the upstreaming of cash associated with the previously announced asset disposition programs of Conseco Finance.
Additionally, they provide for the upstreaming of operating cash flow over the longer term, which will facilitate the restructuring of the company’s bank debt agreements. Conseco has been under new management since Gary C. Wendt joined the company as Chairman and CEO on June 29.The restructuring plan has been under construction since then.
“We took immediate steps in July to bring the company to solid footing,” Wendt said. “And those prompt actions have been very helpful to gaining the support of the financial community.” Wendt referred to the agreement as “the last remaining step toward finalizing the restructuring of the company’s multi-bank lending facility.”
The actual execution of the amendments to the agreement is expected to occur at the closing of the bank debt restructuring.
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