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Tuesday, Apr 21,2009, 4:48:36 PM   Click:

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Source: Associated Press
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NEW YORK_American International Group Inc. completed a sale of preferred shares and warrants issued to the Treasury Department as part of a previously announced plan to receive additional financial support from the government, according to a regulatory filing on Monday .

New York-based AIG said in the Securities and Exchange Commission filing that it sold preferred shares and warrants issued to the Government on Friday in exchange for $ 29.84 billion. The new funds are immediately available for the use of AIG.

The additional funding was announced last month, when AIG disclosed in the fourth quarter loss of $ 61.7 billion, the largest ever quarterly loss in U.S. history.

Under the agreement, AIG must avoid bankruptcy and the government must remain the majority shareholder of the insurer. The agreement also limits the ability of AIG to repurchase stock and requires limits on expenditures for both companies, lobbying and executive compensation.


AIG has received four strokes of support from the government since the credit crunch have increased in September. AIG has received loans totaling approximately $ 85 billion to help it stay in business. Since then, the government renegotiated the financing and extended. Under the financial support of AIG, the government has taken a roughly 80 percent stake in the insurer. AIG received a package of loans from the government worth about $ 180 billion.

In addition, AIG has delayed filing its proxy statement before its annual shareholder meeting in the middle of a possible reshuffle of its board of directors, according to a report in the Wall Street Journal, citing anonymous sources. AIG plans to extend and modify the composition of its board of 11 members, according to the report.

"We are in ongoing discussions on several issues and, therefore, have not yet filed our proxy statement, spokesman for AIG said Mark Herr The Associated Press. "We intend to extend our annual meeting and announce the new date in due course."