American International Group Inc. Chairman and CEO Edward Liddy told the House Committee on Oversight and Government reform Wednesday that the company will likely need "three to five years" to carry out its restructuring plan, and repay taxpayer funds used to bail out the troubled giant, reports the New York Times.
The insurer has received more than $170 billion in aid from the government since its collapse last September.
In his testimony before the House committee, Liddy explicated his efforts to extricate the company from its losses and to spin off its remaining insurance businesses, but warned that the company would not divest its businesses cheaply just to quickly raise funds.
“We must take the time and exercise the diligence to do this restructuring properly,” Liddy said. “Let me be clear—our plan is explicitly designed to avoid having to divest AIG assets at fire-sale prices.”
According to the Times, when asked by lawmakers to clarify, Liddy estimated the entire plan would take “three to five years” to complete. But he cautioned that the projection is fraught with uncertainty, and could be too optimistic should the economy sour, or if market prices for its assets remain depressed.
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