According to the government, Greenhill will be expected to analyze potential transactions involving AIG and advise Treasury on the markets and the investment plans, including "the best strategy, structure, and timing to dispose of the Treasury's AIG investments."
For its services, Greenhill will receive $500,000 a month for the first year of the contract and $175,000 a month for any time after the first year. The contract was to run from the November start into May 2012.
The U.S. Treasury will have 1.655 billion AIG common shares after it converts its preferred shares to common as part of its exit.
AIG has completed more than $50 billion in asset sales--including foreign life-insurance units, an asset-management business and office towers. It also hopes the sale of about $60 billion of its common stock to private investors in the next two years will repay the remainder of its bailout.
Greenhill reported $97 million in advisory fees for its quarter ended Sept. 30. Its shares were inactive in premarket trading at $75.95.