logo
Share SHARE
FONT-SIZE Plus   Neg

American International Group Pays Down In Full Preferred Interests In AIA SPV

American International Group Inc. (AIG) 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

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
Electric car maker Tesla's Chief Elon Musk confirmed that there will be no discount on new cars. Through several tweets and an email addressing its employees, Musk said, "It is absolutely vital that we adhere to the no negotiation and no discount policy that has been true since we first started taking orders 10 years ago." Shares of National Beverage Corp. fell about 15 percent on Wednesday after short selling firm Glaucus Research Group has said it is shorting the soft-drink maker and accused the company of manipulating earnings. In a research report, Glaucus alleged that National Beverage achieved its "remarkable history of financial performance in part by manipulating earnings." Canadian pipeline operator Enbridge Inc. said it has agreed to sell its liquids pipeline assets in the South Prairie Region, including the Saskatchewan pipeline system, to privately-held midstream company Tundra Energy Marketing Ltd. for C$1.075 billion in cash.
comments powered by Disqus
Follow RTT