AIG Pays Government Roughly $36 Billion in 2011
Taxpayers Nearer to Recouping Investment in AIG
Ny, Mar 08, 2011 -- American International Group, Inc. (AIG) announced right now that it had paid in complete the liquidation preference and accrued return on 1 of your unique purpose loans ("SPVs") produced as component of your government's help to AIG and produced a significant payment around the desired interests in one more SPV.
AIG's payments for the U.S. Division of the Treasury ("Treasury") arrived soon after American Insurance Group closed Tuesday on the previously announced sale of all MetLife, Inc. ("MetLife") equity securities AIG received when it offered American Existence Insurance Company ("ALICO") to MetLife last 12 months. The aggregate proceeds of the sale, just before expenditures, were approximately $9.six billion. Existing agreements with MetLife relating to the ALICO sale need that $3 billion of that quantity to become positioned into escrow as substitute collateral for your MetLife frequent equity models offered.
Furthermore, around $300 million earlier held for costs and expenditures by the ALICO SPV has long been paid for the Treasury, bringing the total quantity of money paid nowadays for the Treasury to $6.9 billion.
Because of this with the sale with the MetLife equity securities nowadays, the total quantity of proceeds, just before expenditures, which American Insurance Group obtained from your sale of ALICO to MetLife was around $16.eight billion.
AIG tendered for the Treasury around $1.four billion to repay in complete the liquidation preference and accrued return of your favored interests held by Treasury in ALICO Holdings LLC ("the ALICO SPV") and compensated around $5.five billion to Treasury to reduce the chosen interests in AIA Aurora LLC ("the AIA SPV"), reducing the amount owed by American Insurance Group for the Treasury for the remaining liquidation preference Treasury retains within the AIA SPV to approximately $11.three billion.
"We will go on to get all of the appropriate actions to guarantee that America's taxpayers recoup in complete their investment in AIG," said AIG President and Chief Executive Officer Robert H. Benmosche. "Thanks for the challenging operate of AIG's personnel, we now have produced extraordinary progress, which I'm confident we'll go on."
The non-controlling, nonvoting, callable, chosen equity interests inside the AIA and ALICO SPVs (the "Preferred Interests") were developed by American Insurance Group as well as the Federal Reserve Financial institution of Ny ("FRBNY") on December one, 2009, in exchange to get a $25 billion reduction with the harmony exceptional as well as the greatest credit accessible below the unique $85 billion credit score facility (the "FRBNY Credit Facility") provided by the FRBNY to American Insurance Group in September 2008. The unique liquidation preference for that ALICO SPV was $9 billion. The unique liquidation preference for that AIA SPV was $16 billion.
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