For Release Immediate
Contacts (News Media) Jim Rosensteele, SVP, Corporate
Communications 317.817.4418
(News Media) Brenda Adrian, Sitrick and Company Inc. 212.573.6100
(Investors) Tammy Hill, SVP, Investor Relations 317.817.2893
Conseco, Inc. Announces Confirmation of Plan of Reorganization
Indianapolis, Ind., Sept. 9, 2003: Conseco, Inc. (OTCBB:CNCEQ) today announced
that the U.S. Bankruptcy Court confirmed the Company's Sixth Amended Joint Plan
of Reorganization. Confirmation of the plan clears the way for the Company's
emergence from Chapter 11, which is expected shortly.
William J. Shea, Conseco's president and chief executive officer, said, "Today
we thank the associates and outside experts who worked so hard to help us
navigate the bankruptcy process. To have completed such a large and complex
restructuring in less than nine months is truly a remarkable achievement. We
thank the insurance regulators, distribution partners, customers and suppliers
who supported us at each step along the way. And we especially thank all those
associates who demonstrated their resilience by continuing to write and issue
new business, process and pay claims, and serve customers and agents."
"Because of this tremendous team effort, Conseco will emerge as a re-energized
company with greatly reduced debt and a single business focus," Shea said. The
reorganization will eliminate approximately $5.2 billion of debt and trust
preferred securities. "As we emerge, we intend to apply the same effort to
building our capital and growing profitably," Shea said.
Conseco, Inc. filed for protection under Chapter 11 of the federal bankruptcy
code in December 2002. Under the Plan of Reorganization, the Company's existing
bank debt will be cancelled as of the effective date in favor of a new credit
facility. The Company's outstanding bonds, trust preferred securities and common
stock also will be cancelled. Shares of new common stock, new preferred stock
and new warrants will be issued by the company's successor, Conseco, Inc., a
Delaware corporation, and distributed to various classes of the company's
creditors as outlined in the Plan of Reorganization upon emergence.
The court today also confirmed Conseco Finance's reorganization plan. Both
reorganization plans, confirmation orders and related documents will be
available at http://www.bmccorp.net/conseco.
Conseco, Inc.'s insurance companies help protect working American families and
seniors from financial adversity: Medicare supplement, cancer, heart/stroke and
accident policies protect people against major unplanned expenses; annuities and
life insurance products help people plan for the financial future.
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Conseco (2)
Sept. 9, 2003
Cautionary Statement Regarding Forward-Looking Statements: All statements, trend
analyses and other information contained in this report and elsewhere (such as
in filings by Conseco with the Securities and Exchange Commission, press
releases, presentations by Conseco or its management or oral statements)
relative to markets for Conseco's products and trends in Conseco's operations or
financial results, as well as other statements including words such as
"anticipate," "believe," "plan," "estimate," "expect," "project," "intend,"
"may," "will," "would," "contemplate," "possible," "attempts," "seeks,"
"should," "could," "goal," "target," "on track," "comfortable with,"
"optimistic" and other similar expressions, constitute forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of
1995. Forward-looking statements are subject to known and unknown risks,
uncertainties and other factors which may cause actual results, performance or
achievements to be materially different from the future results, performance or
achievements expressed or implied by the forward-looking statements. Assumptions
and other important factors that could cause our actual results to differ
materially from those anticipated in our forward-looking statements include,
among other things: (i) the ability of Conseco to consummate one or more plans
of reorganization with respect to the Chapter 11 Cases under the Bankruptcy Code
filed by Conseco and some of its subsidiaries, including CFC and CIHC; (ii) the
potential lingering adverse impact of the Chapter 11 Cases on Conseco's
operations, management and employees; (iii) general economic conditions and
other factors, including prevailing interest rate levels, stock and credit
market performance and health care inflation, which may affect (among other
things) Conseco's ability to sell its products, the market value of Conseco's
investments and the lapse rate and profitability of policies; (iv) Conseco's
ability to achieve anticipated synergies and levels of operational efficiencies
and to achieve the goals of recent restructuring initiatives undertaken at
Conseco Insurance Group; (v) customer response to new products, distribution
channels, marketing initiatives and the Chapter 11 Cases; (vi) mortality,
morbidity, usage of health care services and other factors which may affect the
profitability of Conseco's insurance products; (vii) performance of our
investments; (viii) changes in the Federal income tax laws and regulations which
may affect the relative tax advantages of some of Conseco's products; (ix)
increasing competition in the sale of insurance and annuities; (x) regulatory
changes or actions, including those relating to regulation of the financial
affairs of our insurance companies, regulation of the sale, underwriting and
pricing of products, and health care regulation affecting health insurance
products; (xi) actions by rating agencies and the effects of past or future
actions by these agencies on Conseco's business, including the impact of recent
rating downgrades; (xii) the ultimate outcome of lawsuits filed against Conseco;
(xiii) the risk factors or uncertainties listed from time to time in Conseco's
filings with the SEC and with the Bankruptcy Court in connection with the
Chapter 11 Cases; (xiv) our ability to continue as a going concern; and (xv) our
ability to obtain Bankruptcy Court approval with respect to motions in the
Chapter 11 proceedings from time to time. Other factors and assumptions not
identified above are also relevant to the forward-looking statements, and if
they prove incorrect, could also cause actual results to differ materially from
those projected.
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