US to offload $6bn AIG shares

The US Treasury yesterday revealed plans to sell $6bn of American International Group (AIG) shares and struck another deal for the insurer to pay down $8.5bn more in obligations, in a bid to hasten its unwinding. AIG said the agreement would allow it to pay down what it owed in a special purpose vehicle, AIA Aurora, and free up some of the company's collateral, including interests in aircraft lessor International Lease Finance Corp and Asian insurer AIA Group. The special purpose vehicle was set up in December 2009 in exchange for a reduction in the debt that AIG owed the New York Federal Reserve.