New York - Embattled insurance giant American International Group (AIG) will receive a government loan of 85 billion dollars to give the conglomerate time to sell off assets to avoid bankruptcy, business news channel CNBC reported late Tuesday.
Citing unnamed sources, the broadcaster said that the federal government would receive a state of 80 per cent in AIG, in exchange for the bridge loan.
Remaining AIG stockholders would lose most of their equity in the deal, CNBC reported.
The insurer, facing a possible bankruptcy filing as early as Wednesday, is seeking help through the Federal Reserve, the US central bank.