By Miriam Gottfried
American International Group (AIG) released a statement saying it has filed a master agreement with regulators regarding its recapitalization plan with the Securities and Exchange Commission and confirming that trading was halted because of it.
The company’s filing outlines a plan to repay its Federal Reserve credit line using proceeds from sales of two non-U.S. life insurance units, AIA Group and American Life Insurance Company (ALICO).
AIG owes about $21 billion on the line, which was set up during the financial crisis when regulators determined the company was too big to fail. The insurer said in September that a preferred stake worth $49 billion and held by Treasury would be converted into common stock for sale to investors.
“Our filing today that we have signed the definitive recapitalization agreement
with the government marks an important step forward in our progress toward
completely repaying taxpayers. We remain committed to executing the steps and
meeting all conditions in the agreement as soon as possible.”
“Our filing today that we have signed the definitive recapitalization agreement with the government marks an important step forward in our progress toward completely repaying taxpayers,” the company said in a statement. “We remain committed to executing the steps and meeting all conditions in the agreement as soon as possible.”
AIG shares closed down $1.73, or 3.9%, at $42.22.
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Well, well, well, the next phase of the AIG saga begins. It’s final plan to get off the US taxpayers hooks begins and much quicker than I or many others believed would happen methinks. Let’s see what else we can find on this one to post about, it has been quiet the last week or two on AIG, now there back on the charge.
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