December 9, 2010
AIG Takes Steps to Repay Taxpayers
American International Group, Inc. (AIG) announced on December 8 that it had filed a Form 8-K announcing the signing of the Master Transaction Agreement among ALICO Holdings LLC, AIA Aurora LLC, the Federal Reserve Bank of New York, the United States Department of the Treasury, the AIG Credit Facility Trust and AIG, regarding a series of integrated transactions to recapitalize AIG, for which trading on the New York Stock Exchange was briefly interrupted. Regarding the filing of the Master Agreement, AIG issued the following statement:
"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."
In turn, Treasury issued the following statement:
This development is the next step in a process that will accelerate the government’s exit from AIG and ensure that we recover our investment. When this transaction closes, which will occur no later than March 15, 2011, the Federal Reserve loan will be paid off with no expected losses and Treasury’s preferred stock investment will be converted to common shares. Treasury can then sell those shares publicly in order to recover taxpayer funds over time.
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