CARMEL, Ind. - Chase Manhattan Corp. and Bank of America Corp. have agreed to extend until Sept. 22 $155 million of loans to Conseco Inc. and $145 million of guarantees by Conseco regarding loans made to the beleaguered insurer's directors and officers in connection with a stock purchase program.
Chase Manhattan Corp. and Bank of America Corp. have extended Conseco Inc.'s deadline for repaying $155 million of loans and $145 million of guarantees by Conseco regarding loans made to its directors and officers in connection with a stock purchase program until Sept. 22.
In a statement Thursday, Coseco said it was attempting to reschedule about $766 million in bank debt that is due to mature this month. "The action taken by Chase and Bank of America today is a step toward allowing us to achieve the desired restructuring," the company said in the statement.
Conseco has taken a beating this year. Its stock hit a two-year low of $4.625 in May after flying as high as $41.50 in August 1998, just before the company acquired Green Tree Financial Corp., a manufactured housing lender.
In March, Conseco announced it would sell the lender (which had been renamed Conseco Finance) after being forced to take several writedowns related to the unit's gain-on-sale accounting methods.
Gary C. Wendt, the former chairman of GE Capital Services, was hired in late June to help turn Conseco around. He succeeded Stephen Hilbert, who had resigned as chairman in April.
Mr. Wendt has said he is not sure if the sale of Conseco Finance will take place. Last month he said the company expected to raise about $2 billion from the sale of assets, less than half of what was previously expected.