Taxpayers Nearer to Recouping Investment in AIG
Ny, Mar 08, 2011 -- American Global Group, Inc. (AIG) announced today that it had paid in complete the liquidation preference and accrued return on one from the unique purpose vehicles ("SPVs") produced as part from the government's assistance to AIG and produced a significant payment around the favored interests in an additional SPV.
AIG's payments for the U.S. Division of the Treasury ("Treasury") arrived soon after American Insurance Group closed Tuesday on the previously announced sale of all MetLife, Inc. ("MetLife") equity securities AIG received when it offered American Existence Insurance Company ("ALICO") to MetLife last 12 months. The aggregate proceeds of the sale, just before expenditures, were approximately $9.six billion. Existing agreements with MetLife relating to the ALICO sale need that $3 billion of that quantity to become positioned into escrow as substitute collateral for your MetLife frequent equity models offered.
Furthermore, around $300 million earlier held for costs and expenditures by the ALICO SPV has long been paid for the Treasury, bringing the total quantity of money paid nowadays for the Treasury to $6.9 billion.
Therefore of your sale of your MetLife equity securities right now, the complete amount of proceeds, just before costs, which AIG received in the sale of ALICO to MetLife was around $16.8 billion.
American Insurance Group tendered for the Treasury around $1.four billion to repay in complete the liquidation preference and accrued return of your desired interests held by Treasury in ALICO Holdings LLC ("the ALICO SPV") and compensated roughly $5.five billion to Treasury to lessen the desired interests in AIA Aurora LLC ("the AIA SPV"), decreasing the quantity owed by AIG towards the Treasury for that remaining liquidation preference Treasury holds in the AIA SPV to approximately $11.3 billion.
"We will proceed to get all the proper steps to make certain that America's taxpayers recoup in full their investment in AIG," mentioned AIG President and Chief Executive Officer Robert H. Benmosche. "Thanks for the difficult perform of AIG's staff, we've got produced extraordinary progress, which I am self-confident we'll proceed."
The non-controlling, nonvoting, callable, chosen equity interests in the AIA and ALICO SPVs (the "Preferred Interests") were produced by AIG and the Federal Reserve Bank of Ny ("FRBNY") on December 1, 2009, in exchange for any $25 billion reduction from the stability exceptional and also the optimum credit score obtainable below the first $85 billion credit facility (the "FRBNY Credit Facility") provided by the FRBNY to American Insurance Group in September 2008. The first liquidation preference for that ALICO SPV was $9 billion. The original liquidation preference for that AIA SPV was $16 billion.
Ny, Mar 08, 2011 -- American Global Group, Inc. (AIG) announced today that it had paid in complete the liquidation preference and accrued return on one from the unique purpose vehicles ("SPVs") produced as part from the government's assistance to AIG and produced a significant payment around the favored interests in an additional SPV.
AIG's payments for the U.S. Division of the Treasury ("Treasury") arrived soon after American Insurance Group closed Tuesday on the previously announced sale of all MetLife, Inc. ("MetLife") equity securities AIG received when it offered American Existence Insurance Company ("ALICO") to MetLife last 12 months. The aggregate proceeds of the sale, just before expenditures, were approximately $9.six billion. Existing agreements with MetLife relating to the ALICO sale need that $3 billion of that quantity to become positioned into escrow as substitute collateral for your MetLife frequent equity models offered.
Furthermore, around $300 million earlier held for costs and expenditures by the ALICO SPV has long been paid for the Treasury, bringing the total quantity of money paid nowadays for the Treasury to $6.9 billion.
Therefore of your sale of your MetLife equity securities right now, the complete amount of proceeds, just before costs, which AIG received in the sale of ALICO to MetLife was around $16.8 billion.
American Insurance Group tendered for the Treasury around $1.four billion to repay in complete the liquidation preference and accrued return of your desired interests held by Treasury in ALICO Holdings LLC ("the ALICO SPV") and compensated roughly $5.five billion to Treasury to lessen the desired interests in AIA Aurora LLC ("the AIA SPV"), decreasing the quantity owed by AIG towards the Treasury for that remaining liquidation preference Treasury holds in the AIA SPV to approximately $11.3 billion.
"We will proceed to get all the proper steps to make certain that America's taxpayers recoup in full their investment in AIG," mentioned AIG President and Chief Executive Officer Robert H. Benmosche. "Thanks for the difficult perform of AIG's staff, we've got produced extraordinary progress, which I am self-confident we'll proceed."
The non-controlling, nonvoting, callable, chosen equity interests in the AIA and ALICO SPVs (the "Preferred Interests") were produced by AIG and the Federal Reserve Bank of Ny ("FRBNY") on December 1, 2009, in exchange for any $25 billion reduction from the stability exceptional and also the optimum credit score obtainable below the first $85 billion credit facility (the "FRBNY Credit Facility") provided by the FRBNY to American Insurance Group in September 2008. The first liquidation preference for that ALICO SPV was $9 billion. The original liquidation preference for that AIA SPV was $16 billion.
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