Another Massive Bankruptcy

The Associated Press reports that Conseco Inc., a major insurance and finance company, has filed for Chapter 11 bankruptcy. Conseco owes massive amounts of debt, and the federal government is investigating its accounting practices.

This is the third largest company (in terms of assets) to file for bankruptcy. It reports $52.3 billion in assets, although if their accounting practices lack credibility that number may be very inaccurate. That puts it behind WorldCom ($104 billion) and Enron ($64 billion), but ahead of Texaco's 1987 bankruptcy ($36 billion).

The company has reached agreements with bondholders of public debt and bank creditors, but it hasn't yet struck a deal with preferred stockholders.

We'll just have to see how messy this one gets, especially as the accounting practices investigation continues.