American International Group makes more advances in paying off taxpayer installment loans

Of course, AIG borrowed cash through the bailout. It borrowed a lot more than many though. It was controversial that a $130 billion installment loans for bad credit from working class individuals was taken out by the insurance business. American International Group has shown advances. This gives hope. The company is meeting the Treasury to work out debt negotiation soon. Also, a number of billion have already been paid back. The business is set to convert the 80 percent in preferred shares the government holds to common shares, which would be sold for fast cash.

Treasury works with AIG for making payment plan

All businesses that got emergency loans from the government hope the balances can get to zero sooner or later. The government took 80 percent of preferred shares from AIG. This was in exchange for the $132 billion loan that came from taxpayers. American International Group has been selling sub-companies and creating capital. This is all being done with the hope the government can be repaid soon. USA Today explains that the Treasury office and AIG recently met to talk about payment plans. The company hopes that in two years, it could be debt free. That is the plan it has made.

Selling off stock

The company’s current plan is to sell stock. This should raise a lot of money. The government petty much owns American International Group right now. It has about 80 percent of the company’s preferred shares. There is less security in preferred shares than there is in security bonds although there are more dividends. The preferred shares the government holds would be converted to almost a 90 percent share of common stock, which would be offered by the government to investors. Should the stock price rise accordingly, the government will really turn a profit.

AIG keeps on fighting

More than $100 billion is still owed by AIG to the government. That is a lot of money to rise in two years, for any corporation. The company has been doing well in settling accounts, as non-essential divisions are sold off to other corporations.

Further reading

USA Today

usatoday.com/money/industries/insurance/2010-09-14-wsj-AIG_N.htm