American International Group's restructured loan frees the firm from terms in its original bailout that were “strangling the company,” while the new deal “should buy AIG some time” to sell off assets without having to accept “garage sale prices,” Maurice “Hank” Greenberg, the organization's former chief executive, said last week.
Mr. Greenberg–now chairman and CEO of C.V. Starr, once closely affiliated with AIG–had been lobbying AIG's senior management for weeks to renegotiate the terms of the government's original $85 billion bailout loan to charge lower interest rates and extend the term to allow for a more orderly sale of assets.
Hours after AIG and the government announced a restructured deal incorporating many of his suggested changes, Mr. Greenberg delivered his assessment during a video appearance here before the annual conference of the Captive Insurance Council of the District of Columbia.
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