American International Group Inc. (AIG: Quote) announced Thursday that it has made a final $1.5 billion payment to the United States Treasury Department to retire the Treasury's interest in AIA Aurora LLC or AIA SPV. The company said that the payment was made one year ahead of schedule. AIA SPV is a special purpose vehicle created to hold ordinary shares of American International Assurance Company, Ltd. or AIA.
"This $1.5 billion payment is a milestone- it retires the Treasury's interest in the AIA SPV and it reduces total outstanding assistance more than 75 percent," said Robert Benmosche, AIG President and Chief Executive Officer.
The maximum support to AIG authorized by the U.S. government reached $182 billion, of which $21 billion was unused or expired.
The company noted that through repayments, withdrawals, exchanges, sales, and other actions, total outstanding assistance has decreased to approximately $9 billion of the FRBNY's interest in ML III and approximately $36 billion worth of shares of AIG common stock owned by the Treasury.
American International noted that, as a result of today's payment, the security interests in other AIG assets that previously supported repayment of its AIA SPV Preferred Interests, including AIG's interests in ML III and the escrow holding the remaining proceeds from AIG's sale of ALICO to MetLife Inc., have been released.
by RTT Staff Writer
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