U.S. bankruptcy judge has approved the sale of St. Paul, MN-based
Conseco Finance to CFN and GE Consumer Finance, a unit of the General
Electric Co., after an auction in which the two firms made a winning
bid of $1.01 billion for the financially troubled division, The
Associated Press reported March 17.
number of truckdrivers have their rigs financed through Conseco.
Inc. announced Dec. 17 it would file for protection under Chapter
11 bankruptcy laws. The filing – a "voluntary petition to reorganize"
– is the third largest bankruptcy in U.S. history, according to
owed creditors $6.5 billion related to acquisitions during the 1990s,
including the purchase of Green Tree Finance, which became Conseco
Finance. That purchase gave the firm the largest collection of mobile-home
loans in the country, according to a report from AP.
sale decision was announced by Bankruptcy Judge Carol A. Doyle in
Chicago. CFN Investment Holdings, one of the two companies purchasing
the finance unit, is a joint venture of Fortress Investment Group,
J.C. Flowers & Co. and Cerberus Capital Management.