Insurance and finance giant American International Group has just paid back a portion of the emergency loans that it borrowed to stay afloat. The Federal Reserve received a payment recently of almost $4 billion. The company still has a long way to go until AIG has complete debt settlement with the American people. The company still owes about $97 billion and has an open credit line for the next three years. AIG recently sold a hefty portion of its finance wing. The group is battling to get itself out of debt and back into the black.
AIG makes big payment to the Fed
The Federal Reserve was recently wired a payment of nearly $4 billion by AIG, according to Forbes. AIG was lent almost $182 billion in emergency loans, when the company nearly sank in the midst of the financial crisis. Since then, the Federal Reserve has kept an open line of credit for the company, in case it needs some further loan cash. AIG has been paying on the debt, as the debt for the company is now less than $100 billion for the first time since 2008. There is an open line of credit for AIG, as the Federal Reserve has $30 billion open to AIG in case it should be needed.
Share sale makes the difference
AIG sold a large amount of shares in the finance wing of the company. The sale was for about $130 million for an 80 percent stake in American General Finance Inc., according to Bloomberg. The shares were bought by Fortress Investment Group, LLC. The sum Fortress paid makes hardly a dent in the debt, but at least it makes for a quick payday for AIG. Every little bit helps.
AIG turning things around
A new day may be dawning for AIG, or at least a healthier day. The company had to borrow money, and a lot of it, in order to stay afloat. The American people were not happy with it, especially with the news of bonuses paid after a near total failure of the company. That said, AIG did make a big payment, so perhaps AIG is on track to recovery.