Conseco Details Plan to Raise Cash

NU Online News Service, Jan. 29, 4:50 p.m. – Conseco Inc., Carmel, Ind., today announced actions it says it is taking to generate $750 million to $800 million in cash needed to meet 2002 debt obligations.

The actions include:

• Repurchasing bonds at discount on the open market.
• Reinsuring parts of the supplemental health and life insurance blocks of business.
• Selling the variable annuity business.
• Finding a joint venture partner for the manufactured housing floorplan business.
• Expanding a bank line at Conseco Finance Corp.
• Doing whole loan sales on some home equity and home improvement receivables.
• Selling non-core assets.

Gary Wendt, Conseco chief executive, reports in a memorandum that Conseco has already received bids for the VA unit and expects to announce a deal by March 31.