Conseco pankrot $52,2 mld
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Reuters
Conseco Files for Bankruptcy
Wednesday December 18, 2:56 am ET
NEW YORK (Reuters) - Conseco Inc. filed for bankruptcy on Wednesday, according to documents filed with a Chicago court, making the troubled insurance and loan firm one of the largest U.S. bankruptcies to date.
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The move heralds a restructuring of Conseco, which has defaulted on bank and bond debts and been in discussions with creditors for several months.
According to recent financial filings, Conseco has assets of $52.2 billion. That makes it the third largest U.S. bankruptcy behind WorldCom Inc. and Enron Corp.
Analysts and rating agencies have expected a bankruptcy filing by Conseco for several months. Its stock was delisted from the New York Stock Exchange in the summer.
The company, based in Carmel, Indiana, piled up massive debts in a 1990s acquisition binge, capped by its disastrous purchase of loan firm Green Tree Financial in 1998.
The deal exposed Conseco to a mountain of bad loans -- largely on mobile homes and manufactured housing -- which have worsened as the economy turned sour.
In the late 1990s Conseco piled on more debt and aggressively accounted for gains from the securitizations of loans, a practice it later abandoned. That led to a restatement of several years' profits, which shook Wall Street's faith in the firm.
Gary Wendt, former boss of General Electric's GE Capital unit, was brought in two-and-a-half years ago to rescue the firm, picking up a $45 million signing bonus, but he quit as chief executive in October, admitting his turnaround plan had failed.
By then, the firm was laboring under more than $6 billion in bank and bond debt, with less money coming in from insurance and loan operations to keep up repayments.
No further details of the bankruptcy were available in filings submitted to the United States Bankruptcy Court, Northern District of Illinois. A Conseco spokesman was not available for comment. -
No kui võrrelda GDP-ga, siis selle pankroti suurusjärk oleks võrreldav sellega, et Eestis läheks pankrotti ettevõte varadega 500m EEK väärtuses.
