Conseco announced that it received a forbearance agreement from its lenders last week, but the bank debt continued to languish in the 58-61 range as no trades took place. An undisclosed seller was looking to unload a $30 million piece of Conseco bank debt, but the seller is finding the current levels for the paper to be too low, according to market players. "The buyers are in the high 50s, but the sellers aren't there," one trader said.
The forbearance agreement applies to the company's $1.5 billion credit facility and extends through Nov. 26, giving Conseco some breathing room as its lenders have promised not to exercise remedies to the company's covenant breach. Conseco also was able to secure forbearance agreements for its $540 million in directors and officers loans. Calls to Conseco were not returned by press time.