Nov 20, 2002 2 min read

INDIANAPOLIS (AP) – Conseco Inc. on Tuesday reported a nearly $1.8 billion quarterly loss, and the insurance and finance company said it would seek Chapter 11 bankruptcy protection if it can reach an agreement with creditors. The loss for the three months ended Sept. 30 bring Conseco’s losses for the year to more than $6 billion. It has been in talks with its creditors since August to restructure $6.5 billion in debt.

While the parties initially said they hoped to reach a deal by now to avoid further deterioration of Conseco’s financial condition, the company offered no specifics on the status of negotiations in a filing Tuesday with the Securities and Exchange Commission.

“The company is not currently in a position to predict the outcome of these discussions,” Conseco said.

Conseco, citing earlier disclosures that it had defaulted on bond payments, also noted the debt holders could “at any time” file a petition against it under bankruptcy laws. But Conseco said it was unaware of “any current efforts to do so.”

Tuesday’s earnings were released four days after Conseco filed for an extension with the SEC, saying it needed more time to account for declines in the value of its assets.

Conseco said its net loss for the three months ending Sept. 30 was $1.77 billion, compared with a nearly $410 million loss in last year’s third quarter. Total losses for the first nine months of this year were $6.1 billion.

Conseco reported quarterly charges of $701 million for a decline in the value of investments tied to Conseco Finance Corp., a subsidiary in St. Paul, Minn. The parent company also reported a $500 million goodwill writedown reflecting a decline in the value of assets, and investment losses of $278 million.