Conseco hasn't been tight with a buck.
Shortly after the Green Tree deal, the company recruited General Electric wizard Gary C. Wendt as CEO, awarding him one of the lushest contracts in history, worth at least $75 million and gauranteeing him a retirement annuity of $1.5 million yearly. The company also made loans of nearly $550 million to its executives and directors. No one seriously expects any of those to be repaid.
Wendt is throwing ballast overboard as fast as possible. The company said Friday it would halt interest payments on about half of its $2.6 billion in bonds for at least the next 30 days.
Wendt is celebrated for his business acumen and for his bitter and very public divorce from his first wife, Lorna, several years ago. She sought to be compensated for her
According to the post bankruptcy propaganda the Old Conseco directors liquidated Old Conseco, sold off all the Old Conseco business assets to corporate raiders and closed down the business. The raiders paid the creditors a pittance and the shareholders who were not allowed to vote on the plan, nothing.
The corporate raiders RESOLD the Old Conseco business assets for a profit. The Old Conseco directors should have bought the Old Conseco assets at the price the raiders paid the creditors--that is a reorganization.
The Old Conseco directors betrayed the shareholders for 40 pieces of silver. Unless, they had some secret back-up plan to merge with the raiders after the Old Conseco shareholders and creditors sold off their claims to the raiders and others and the "liquidation" plan was just a media ploy to scare investors into selling their stocks and bonds for a tax write off? Is that INSIDE TRADING?
>I would not be a plant, but I did used to toil there. I've seen a lot, so if you guys want to know anything I might have the answer to, fire away. If Conseco were concerned about this stuff, they might be concerned about what I've seen.<
It sounds as if you have a few things to take off your chest too. FIRE AWAY BACKATCHA!
I see this Conseco Plant thing on several postings each week. What is this? Has there actually been a spy, or is there some paranoia out here?
I would not be a plant, but I did used to toil there. I've seen a lot, so if you guys want to know anything I might have the answer to, fire away. If Conseco were concerned about this stuff, they might be concerned about what I've seen.
> You are so right. I find it interesting that some people don't let facts get in the way of imagination. They would rather make stuff up than read about what actually happened. <
It's so obvious.
So much money are you saving your customers, you big Carmel bigshots?
At the very least, an opportunity to make money is lost, at most they may cause mental harm to themselves. Well, maybe that last part is a gross exageration. One must have mental capabilities before they can damage them.I am not sure these guys qualify.
If you believe the banks are going to lend $380 million dollars for stock buyers to buy stocks and then lose all the money loaned, then you are awfully naive.
If the banks loaned 100% percent of the stock purchase price, which is illegal, then obviously the banks immediately found the stock collateral below margin requirements and immediately sold the stock collateral at no loss, possibly even a profit.
If you think the Old Conseco D&Os are going to borrow $380 million dollars to buy stocks and then let the stock become worthless while they end up owing $650 million in principal and interest to the banks then you are terribly gullible. You believe the phoney story that the banks lost hundreds of millions of dollars in loan principal and interest and the Old Conseco D&O ended up with worthless stock which they bought with BORROWED money and ended up owing the banks $650 million? Do you actually believe that STUPID lie?
A reasonable explanation is the Old Conseco D&O issued new stock to themselves, borrowed 100% of the current market value on the stocks (which is illegal) and then the banks SOLD the stock collateral to the public shareholder buyers. The banks got the money loaned by selling the stocks and may have made a profit. The D&Os kept the loan money ($380 million?) and made an agreement that they didn't have to pay the money "borrowed" back, if the company changed ownership or had a change in control.
The banks didn't lose money. The D&Os MADE BIG money. The losers were the Old Conseco shareholders who had their stock value and voting rights diluted.
And maybe the IRS lost some money because the D&Os and the banks paid no money on the money they made and probably took a tax deduction for "alleged" loan losses. If the D&O sold the Old Conseco stock for $380 million profit, they would have to pay taxes, but if the "borrowed" money--no taxes. If the banks made money selling the loan collateral--taxes. If the banks allegedly lost money and a "bad" loan--no taxes.
The obvious fact is the Old Conseco shareholders lost all the money they paid for their stocks AND their corporate voting rights in the hijacking scheme. The Old Conseco unsecured bondholders lost most of their money. Many other claims were cancelled. All these people lost money. Money doesn't disappear. It goes somewhere. Where did it go? The crooks and liars got it.
> The 10-Q is the quarterly public filing every public company must file, and the 10-K is the annual filing. You can go onto the CNO web site and download either of these for several periods and get into the meat of what makes the place tick. On some stuff you have to read carefully to understand what it means. I've had to proof-read these things and it's easy to fall asleep while doing so. The K can be over 200 pages long. If I can answer anything, let me know and I'll give it a shot.<