Conseco bank debt slipped from the high 60s to the mid-50s following a bank call last Tuesday. The details of the bank meeting could not be ascertained, but the company later disclosed that operating results combined with non-operating charges would reduce shareholder equity from $4.7 billion, where it was recorded at the end of 2001, to $533 million at the end of June. At least $10 million in paper is believed to have changed hands.
The company's numbers have suffered both from a net loss of $1.3 billion and a $2.9 billion write-down of goodwill in concordance with the Financial Accounting Standards Board's rule 142. In addition, A.M. Best downgraded the financial strength ratings of Conseco's principal insurance subsidiaries to B from B++ last Thursday. The company has stated that it is contemplating strategies for a more aggressive restructuring plan, and investors speculate that it could ultimately end up filing for bankruptcy. Calls to Mark Lubbers, company spokesman, were not returned by press time.