AIG had to borrow a lot of cash during the bailout. The insurance giant took out more than $130 billion in private loans from the working class individuals to keep from collapse, and controversy surrounded it. American International Group seems to be doing really well now. The company has already paid back various billion to the government, and just lately had a meeting with the Treasury to determine how to complete the debt settlement. The plan for the company is to switch from the 80 % in preferred shares the government has to common shares. Really, this ought to help the business get some fast cash soon Post resource – AIG makes more progress in paying off taxpayer installment loans for bad credit by Personal Money Store.
Payment plan between American International Group and Treasury
All companies that got emergency cash loans from the government hope the balances can get to zero quicker or later. AIG received about $132 billion in loans from the working class individuals, and for that generous offer of help, the government got an 80 percent stake in the preferred shares of the company. Since then, American International Group has been selling sub-companies and creating capital to pay off the government. Payment plans are what the Treasury office and American International Group met to discuss. USA Today explains this. The business hopes to finish paying off the loan in two years.
Stock sale
The bulk of the fund raising would be done via sale of stock. About 80 % of preferred shares in American International Group are held by the government. There is a large difference big difference between preferred shares and common shares. There is usually more in dividends although security is lacking when compared to bonds. The government would offer stock to the investors with the preferred shares it holds right now which is about 90 percent of common stock. The stock price going up would mean a profit. The government would love for making a profit.
AIG hopes to go miles before napping
More than $100 billion is still owed by AIG to the government. That is lots of money for any corporation to get together in two years. As non-essential divisions of the company are being sold off, the business is doing well in settling accounts.
USA Today
usatoday.com/money/industries/insurance/2010-09-14-wsj-AIG_N.htm
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