Replies to post #2606 on Penny Gamblers Paradise

[pkripper]

I think that one has ran it's course.

[pkripper]

CNO news

Conseco Seeks to Amend $911.8 Million Credit Agreement
Fri. March 27, 2009; Posted: 03:45 PM

-- Conseco Inc. said it's seeking to amend its $911.8 million senior secured credit agreement to allow for changes or waivers of financial covenants, as well as an increase in the interest rate that it would pay.

The life and long-term care insurer said the proposed amendment doesn't seek any more borrowing or any changes in the current repayment schedule, but would require consent from most of the lenders.

Banc of America Securities will act as lead arranger for the proposed amendment, Conseco said. However, the insurer said it couldn't assure that it will receive the amendment or waivers.

Recently, Conseco (NYSE: CNO | Quote | Chart | News | PowerRating) again delayed filing its Form 10-K because it hadn't completed its financial statements for year-end 2008 (BestWire, March 18, 2009). At that time, it expected to file its 2008 annual report by March 31, instead of around March 17, and was continuing to provide information to address auditors' concerns.

Earlier, as Conseco preliminarily widened its fourth-quarter net loss, it warned of possible concerns by auditors over its liquidity and ability to pay off debt. The insurer said its independent accounting firm said it needed more information to satisfy their concerns regarding its liquidity and debt covenants, mostly those that could be hurt by a significant amount of more realized losses in its investment portfolio (BestWire, March 3, 2009).

If auditors doubt the company's ability to continue as a going concern, their report on the company's year-end 2008 consolidated financial statements would explain that it would default on its senior credit facility, Conseco said at the time (BestWire, March 3, 2009).

A year ago, the Carmel, Ind.-based company said it was reviewing strategic alternatives and hired investment banking firm Morgan Stanley as its adviser (BestWire, March 19, 2008).

On March 4, A.M. Best Co. downgraded the financial strength rating to B (Fair) from B+ (Good) and issuer credit ratings to bb from bbb- for the key life/health subsidiaries of Conseco.

On the afternoon of March 27, Conseco's stock was trading at 74 cents a share, up 0.19% from the previous close.