US trio take lead on latest AIG bailout

Davis Polk & Wardwell, Weil Gotshal & Manges and Sullivan & Cromwell have grabbed lead roles on the latest multibillion pound bailout of AIG.

The insurer, which yesterday (2 March) reported a record fourth quarter loss of $61.7bn (£43.5bn) and an annual loss of $99.3bn ((£70.1bn), reached an agreement that will see the Treasury give the company up to $30bn (£21.1bn) of additional funds.

The agreement also forgives some of AIG's existing debt to the government by turning it into equity; attaches a lower interest rate to AIG's outstanding debts and gives the government control of two AIG subsidiaries.

The restructuring sees Sullivan serving as counsel to AIG - as it did in the company's three prior bailout agreements - with Weil serving as S&C's co-counsel. Weil has helped AIG unload some of its units to raise cash and has reportedly been retained as bankruptcy counsel should AIG ever have to file for Chapter 11.

Michael Wiseman has been leading the Sullivan team along with firm chair H. Rodgin Cohen and partners Robert DeLaMater, Robert Reeder III and Ann Fisher, according to sources familiar with the talks.

Partner Michael Aiello has been leading the Weil team along with partners Matthew Gilroy, Marcia Goldstein, Robert Carangelo and Joseph Allerhand.

Lawyers from both firms declined to comment.

Meanwhile, a team from Davis Polk has been advising the federal government on the newest round of talks--just as they have in prior AIG deals

Simpson, Thacher & Bartlett partner James Gamble represented the AIG board of directors, according to sources. Gamble has represented the company before in securities litigation (as has Weil), according to his biography.

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