Conseco announced preliminary numbers for the 4th quarter of 2008. They estimated a loss of $400+ million for the 4th quarter, primarily relating to their transfer of legacy Long Term Care business from Conseco to a Trust for the benefit of their LTCi insured. The Transfer cost Conseco $367.5 million in Q4 2008.
The larger issue is the Auditor’s concerns about the company’s liquidity which would result in “Going Concern” being added to the 2008 Audit’s Financial Opinion. The addition of the “Going Concern” language would result in Conseco being in default on their Senior Credit Facility (unless waived by Creditors).
Conseco is hoping that, by delaying the filing, they can submit evidence to the Auditor’s to remove the “Going Concern” language from the Opinion Letter.
For those interested, here is a link to the Conseco Conference Call from this morning. . .I haven’t listened yet, but I’ll listen in tonight to see if there is any more info I can post.