Business

AIG said to be planning shakeup to raise cash

The American International Group, the insurance company, is planning a major reorganization and a sale of its aircraft leasing business and other units to stabilize its finances, a person briefed on the company's strategy said on Sunday.

AIG became one of the focuses at an emergency gathering of Wall Street executives over the weekend, and was trying to arrange a capital infusion in the face of possible credit downgrades.

It was unclear whether AIG would succeed in its capital search, but a person briefed on the discussions said it was seeking more than $40 billion even as it tried to sell assets to shore up its financial footing. Among the businesses likely to be sold is AIG's aircraft leasing business, the International Lease Finance Corp. Founded in 1973, the business has nearly 1,000 planes in its fleet.

Investors, afraid that AIG would have to absorb further write-downs in its already damaged mortgage securities and collateralized debt obligations, have driven down the company's shares in recent days. The stock closed Friday at $12.14 a share, a decline of 46 percent for the week.

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