Will AIG's Liquidation Ever End?

The non-breakup of AIG continues apace.

On Tuesday came word that the company can’t sell its International Lease Finance aircraft-leasing unit, once thought to be one of its crown jewels, and may instead hold on to the business and operate it for awhile longer.

Yesterday we learned that the main bidder for AIG’s asset management operation has dropped out, which means the company is back to square one in trying to dispose of that business.

It’s been ten months since the government bailed out AIG, and the main lesson since then is that the company basically can’t sell anything to anybody. I’ve seen slow-motion liquidations before, but this is ridiculous. . . .

Comments

[wakeup call:]

Why rush sales of crown jewels in a down market? When AIG got an extension on its government support facilities all assets sales should have stopped pending a market turnaround. Selling assets in the market on a rush basis will only results in significant profits to purchasers will no collateral benefits to the federal government as lender.

As a US tax payer I would like to see maximum value derived for each asset sold. This should not be a rush to liquidation but a rationalization of one of the worlds top insurers that allowed one area to get out of control.

Jul 16 08:12 AM

[Perry B:]

The writing is on the wall remember WAMU? When the feds decide all the wheels have been greased, and the major investors have pulled the last of their money out of this shell stock . Bilking the ignorant and the innocent out of a fortune (AIG). Then the Feds will shut AIG down and whoever is left as shareholders will lose. AIG looks like it is trading at $13.00. But the reality is. The stock, after the 20-1 reverse split is valued at .55 cents per share. Trading at .50 lower than its pre split share price of $1.03. This stock should not be allowed to trade at all. It is junk. So who is protecting this to big to fail worthless paper junk stock? Of course greedy legislatures, congressmen. A corrupt SEC, and hedgies. In my opinion. AIG, has a nasty habit of reducing pension fund values.Obviously do not mind diluting share value. Manipulating option calls and puts. All the while amassing fortunes for its above mentioned cronies and co conspiritors. Maybe I am being a bit to cynical. But what reputable company would buy into this baggage saturated company? It would take any company years, just to figure out who to payoff to stay in buisness. Stock traders and investors beware. This AIG stock could go from the current trading price of $13.00 to .06 in after hour trading. Just like WAMU. No warning. Just like their 20-1 split. No warning. So beware Is my advise. As mentioned in above atricle. this is a ridiculous, and should be considered a criminally long wind down.

Jul 16 11:39 AM

[kingn:]

Matt
Do you think AIG stands a chance to turnaround and have any equity value...or it is pretty much as good as dead!

Jul 16 11:37 PM

[djj420:]

I was finally able to open a short position in AIG today (@ 13.28), after several unsuccessful attempts since their reverse split. I'm willing to bet they never get their heads above water.

Jul 20 01:59 PM