American International Group (AIG) has executed its previously announced recapitalization plan of repaying outstanding balance debt, with the US Department of the Treasury, the Federal Reserve Bank of New York (FRBNY), and the AIG Credit Facility Trust.
The plan includes repaying in full the approximately $21bn outstanding balance under the credit facility extended by the FRBNY, and exchanging various forms of government support into common shares, resulting in the Treasury Department owning approximately 92% of AIG’s common shares.
AIG further said it expects that over time the Treasury Department would sell its stake in AIG subject to market conditions.
AIG president and CEO Robert Benmosche said that now, AIG will continue to focus on strong business performance for the benefit of all of our stakeholders, including our largest shareholder, the Treasury Department.
"We remain grateful for the extraordinary assistance that taxpayers provided during the financial crisis of 2008, and we continue to believe they will realize a profit on their investment in AIG,"Benmosche said.