AIG CEO Cancels Korea Trip – “Nothing To Do” With Hyundai Deal

October 31, 2000

AIG CEO Maurice Greenberg canceled a previously scheduled trip to Seoul, prompting speculation that the $1 billion plus deal announced last July for an AIG led consortium to acquire a 50 percent interest in financially troubled Hyundai Investment Trust Management Co.(HITS) was in trouble.

AIG spokesmen quickly denied that there was any connection. According to a report in the Financial Times his visit, “had nothing to do with the Hyundai investment matter, which is being handled by appropriate other senior executives and not by Mr. Greenberg himself.”

Nevertheless the timing puts a spotlight on the Korean government’s refusal to agree to AIG’s demands for a reduction in loan interest payments, and for a five year extension on some of HITS outstanding debt owed to the government.

Although the parties had earlier announced that the deal would be completed by the end of October, it’s now apparent that there’s a delay in reaching final agreement on the terms of the rescue package.

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