Lehman's London Landlord Says Rent Payments Are Insured by AIG
2008-09-16 15:20:16.970 GMT
By Peter Woodifield
Sept. 16 (Bloomberg) -- Lehman Brothers Holdings Inc.'s London landlord, Songbird Estates Plc, said rent payments on the bank's offices in the Canary Wharf financial district are insured by American International Group Inc.
Lehman filed for Chapter 11 bankruptcy protection yesterday and AIG, the largest U.S. insurer by assets, is struggling to raise cash to keep the company afloat.
AIG is committed to paying up to four years of rent in the event of a default, Songbird said a statement today.
The downgrade in AIG's credit ratings means it must post collateral or have its commitment ``guaranteed by an entity with specified credit ratings,'' Songbird said.
Canary Wharf Group, a unit of Songbird, expects talks with Lehman's administrator to start shortly, the company said.