Conseco gets approval to leave bankruptcy.Conseco Inc.'s plan for reorganization Plan for reorganization A plan for reorganizing a firm during the Chapter 11 bankruptcy process. has been approved by the court, paving the way for the company to come out of bankruptcy bankruptcy, in law, settlement of the liabilities of a person or organization wholly or partially unable to meet financial obligations. The purposes are to distribute, through a court-appointed receiver, the bankrupt's assets equitably among creditors and, in most as an insurance-only operation. Conseco reported the U.S. Bankruptcy Court bankruptcy court n. the specialized Federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, and each one's territory covers several counties. confirmed the company's sixth amended joint plan of reorganization on Sept. 9, permitting Chapter 11 status, the company said. William J. Shea, Conseco's president and chief executive officer, said Conseco would emerge as a re-energized company with greatly reduced debt and a single business focus because of the team effort in working through this process. The reorganization eliminates about $5.2 billion of debt and trust preferred securities, the company said. "As we emerge, we intend to apply the same effort to building our capital and growing profitably," Shea said. Conseco filed for federal bankruptcy protection under Chapter 11 in December 2002. Under the plan of reorganization, the company's existing bank debt is to be canceled as of the effective date in favor of upon the side of; favorable to; for the advantage of. See also: favor a new credit facility, Conseco said. The company's outstanding bonds, trust preferred securities and common stock also will be canceled. Shares of new common stock, new preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. and new warrants are to be issued by the company's successor--Conseco Inc., a Delaware corporation--and distributed to classes of the company's creditors, Conseco said. |
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