Quick Facts
FONT-SIZE Plus   Neg
Share SHARE
mail  E-MAIL

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

RELATED NEWS
Trade AIG now with 
3/22/2012 4:44 PM ET

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.

Register
To receive FREE breaking news email alerts for American International Group, Inc. and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
Housing starts in the U.S. showed a notable increase in the month of March, according to a report released by the Commerce Department on Wednesday, although starts still came in well below economist estimates. The report showed that housing starts climbed 2.8 percent to an annual rate of 946,000 in March from the revised February estimate of 920,000. After moving mostly higher over the course of the two previous sessions, stocks may see some further upside in early trading on Wednesday. The major index futures are currently pointing to a higher open for the markets, with the Dow futures up by 63 points. The U.K. unemployment rate fell below the 7 percent threshold to a five-year low in February and average earnings finally moved above inflation reducing the squeeze on household finances. The jobless rate came in at 6.9 percent of the labor force, the lowest since February 2009, data from the Office for National Statistics showed Wednesday.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.