American International Group (AIG) has announced that it has signed a definitive agreement with the Federal Reserve Bank for a two-year US$85 billion revolving credit facility.
In return for the loan, the US government will receive almost an 80 per cent stake in the insurer
AIG chairman and CEO Edward M Liddy said the insurer had made an exhaustive effort to address its liquidity needs but being unable to do so this facility was the best alternative.
“We are pleased to have finalised the terms of the facility, and are already developing a plan to sell assets, repay the facility and emerge as a smaller but profitable company.”
Published: 25-09-08
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