AIG expects long restructuring process: report

A man walks past the American International Group (AIG) building in New York's financial district, March 16, 2009. REUTERS/Brendan McDermid

(Reuters) - American International Group Inc (AIG) and the U.S. government expect a multi-year restructuring of the insurer, the Wall Street Journal said, citing an internal AIG memo.

The April 23 memo described an initiative code-named ‘Project Destiny’, which involved a 45-day review of AIG’s businesses that is supposed to lead to the multi-year restructuring plan, the paper said.

A large part of the memo, sent to employees by email, consisted of an update on the project by AIG Chief Restructuring Officer Paula Reynolds, according to the paper.

The project may be discussed at a Congressional hearing about AIG, scheduled for Wednesday, the paper said.

An AIG spokeswoman could not be immediately reached for comment by Reuters.

The U.S. government has stepped forward three times to help AIG stay afloat, committing some $180 billion in its efforts to rescue the insurer from huge mortgage-related losses. In exchange, the government has an 80 percent stake in AIG.

Reporting by Ajay Kamalakaran in Bangalore; Editing by Muralikumar Anantharaman