Conseco obtains forbearance agreement on $1.5 billion credit facility

By Sara Rosenberg

New York, Oct. 17 - Conseco Inc. and its senior lenders have agreed on a forbearance agreement through Nov. 26 on its $1.5 billion credit facility. Similar forbearance agreements were also obtained on loans guaranteed by the company under the 1997, 1998 and 1999 directors and officers loan programs.

"The agreements provide that the participating lenders will forbear from exercising remedies arising from various breaches, including those previously covered by the waivers granted on September 8, 2002," a news release said.

The waivers cover cross-default provisions under Conseco's credit agreement and noncompliance with the debt to capitalization ratio covenant as of June 30, 2002. At that time, the company also obtained a limited waiver of potential non-compliance as of Sept. 30.

Conseco is a Carmel, Ind. financial services holding company.

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