Large pieces of Conseco's bank debt have been trading in the high 80s as the company nears the completion of its bankruptcy proceedings. A $20 million piece was spotted changing hands in the 88-89 range up from the high 70s to low 80s, where the market for the paper was quoted at the beginning of the month, according to LoanX. The tranche and the parties involved in the trades could not be determined.
Estimated recovery coming to lenders under the company's plan of reorganization is 100%. But one dealer noted that while the final recovery is par, ultimate recovery depends on where the new securities trade. Under the company's plan of reorganization, lenders are slated to receive portions of new "A" and "B" bank debt tranches, a portion of preferred stock in the reorganized company and new Conseco warrants. Ballots for the constituencies entitled to vote on the company's reorganization plan are due by May 14. A confirmation hearing of the plan is set for May 28. Eugene Bullis, Conseco's cfo, did not return calls by press time.