Conseco Is Suspended From Trading on NYSE

Conseco Inc. shares were suspended from trading by the New York Stock Exchange and may be delisted, the exchange said Monday.

The move follows the insurance and finance company’s announcement Friday that it won’t make some bond payments and has asked its lenders to restructure its $6.5 billion in debt, the Big Board said.

The exchange cited the company’s failure to make the payments, as well as the “abnormally low selling price” of Conseco’s shares, for the suspension.

The stock has fallen 96% in the last year, closing Thursday at 34 cents, as Chairman Gary Wendt has struggled to overhaul the firm and repay debt amid high loan losses and slumping earnings.

Conseco shares slid 21 cents, to 13 cents a share, in over-the-counter trading.

“I don’t see how they avoid Chapter 11” bankruptcy, said Bill Batcheller, a money manager at National City Corp., which manages $89 billion and used to own Conseco shares.

Conseco bondholders held a conference call on Monday to discuss setting up a committee of creditors, said Robert Rodriguez, a money manager at First Pacific Advisors, which owns Conseco bonds and stock.

“We have a goal of getting this resolved in a very time-sensitive fashion in the next 30 days,” Rodriguez said. “That’s going to be a very large task to achieve.”

Carmel, Ind.-based Conseco can appeal the exchange’s decision, the Big Board said. The exchange said it may suspend trading of a stock “if it believes that continued dealings in the security on the NYSE are not advisable.”

“The New York Stock Exchange announcement this morning was not unexpected, and we will be dealing with these issues as part of the restructuring process,” said Mark Lubbers, a spokesman for Conseco.