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Non-Tech : Conseco Insurance (CNO) -- Ignore unavailable to you. Want to Upgrade?

To: dfloydr who wrote (631)	2/26/1998 7:38:00 PM
From: Wabash Cannonball	Read Replies (1) \| Respond to of 4155

On 9-4-97, Reply #315 indicated that there were personal guarantees that backed up corporate guarantees of the loan. Supposedly the corporate guarantees are what made the interest terms so attractive at 5 percent, but personal guarantees make the insiders personally responsible. On 11-19-97, Reply #411 indicates that there is recourse against the insiders if the loans need paid. I don't know if these two replies cited above are based in fact, but I would be interested if anyone has evidence. The logic that there are personal guarantees and that the company would have recourse (in fact would have to pursue insiders to avoid shareholder suits) seems natural to me. The insider I talked to told me that this type of loan arrangement had been undertaken by insiders twice before for stock purchases, and the insiders enjoyed significant stock appreciation both times. I think he expected the same to occur again. Time will tell....