After announced that it may file for bankruptcy,
Although CEO Gary Wendt has vigorously defended the companys restructuring efforts and denied talk of bankruptcy, Consecos decision to use a 30-day grace period to pay back loans sparked downgrades of both the holding companys debt and the financial stability of its subsidiary insurers.
Even before the most recent rash of downgrades, Consecos fixed annuity distribution in the bank channel was dismantled because of the companys inability to sell B-rated products in such a conservative marketplace.
Now, Conseco may have to lower the price for Conseco Variable Insurance Co. According to one source, since the most recent news about Conseco broke, the price invivia had committed to pay to acquire the company has dropped.