Conseco Announces Forbearance Agreement

Indiana-based Conseco, Inc. announced that the company and its senior lenders have executed a “Forbearance Agreement” on the company’s $1.5 billion credit facility.

Official default deadlines have now been pushed forward to November 26, 2002, “provided that other customary terms of the agreement are met.” The agreement extends a prior arrangement with the company’s creditor banks that expired yesterday.

Conseco and its creditors are trying to come to an agreement on restructuring its debts in order to avoid bankruptcy, or to agree on a “structured bankruptcy” that would see the creditors assume control of the company.

The announcement said only that, “Those discussions are continuing productively.”