Beleaguered insurer American International Group Inc., parent of Hartford Steam Boiler Inspection and Insurance, is looking to alter its $150 billion government loan while it continues to look for buyers for some of its operations, according to published reports.
AIG has a tenative deal to sell Hartford-based HSB Group to German insurer Munich Re AG for $742 million, a price former AIG Chairman and CEO Maurice R. “Hank” Greenberg has criticized as all but a giveaway.
Under a proposed plan, the government’s primary loan to AIG totaling $60 billion would be repaid with a combination of debt, equity, cash and stakes in operating businesses, according to a report in The Wall Street Journal. The Journal, citing anonymous sources familiar with the discussions, said the sides have been working to revamp the loan since December.
AIG spokeswoman Christina Pretto declined to provide specifics about potential changes to the company’s government loans, but did acknowledge the company is reviewing alternatives with the government ahead of releasing its fourth-quarter results.
“We continue to work with the U.S. government to evaluate potential new alternatives for addressing AIG’s financial challenges,” Pretto said Tuesday. “We will provide a complete update when we report financial results in the near future.”
It is expected AIG will report fourth-quarter results in the coming week.
The Federal Reserve Bank of New York, which is handling the government loan, declined to comment.
At 11 a.m., AIG traded at 40 cents, down 13 cents, or 24.6 percent. (AP)
