AIG has reportedly confirmed that it will continue talks with Japan’s Chiyoda Life in an effort to restructure the 96 year old company, following yesterday’s announcement that it was filing for bankruptcy protection.
Reuters News Agency quoted an unidentified AIG spokesman as saying, “We have received a request from Chiyoda to help in its restructuring, and the AIG group has expressed our intention to accept that request.” He revealed no further details, but indicated that the timing of any decision would be up to the bankruptcy court.
Regulatory authorities are hopeful that a foreign investor will come to Chiyoda’s rescue, but have indicated that there’s no immediate plan for the government to step in. At the end of September Chiyoda’s liabilities exceeded its assets by $315 million, forcing it into bankruptcy. S&P promptly lowered the company’s ratings to “R,” indicating its reorganization.
While Japan’s Financial Services Agency, which oversees the insurance industry, has indicated that no other insurers are facing problems as serious as Chiyoda’s, the bankruptcy filing was at least partly responsible for a 1.04 percent drop in the Nikkei stock index when it reopened for trading Tuesday after a holiday.
Topics AIG
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