Geneva International Airport to borrow from the Treasury Board as part of plan output (Yahoo!)

The Government of the United States and American International Group Inc. (NYSE: AIG) on Wednesday announced an agreement to accelerate repayment of taxpayers dollars and disable the road for the company to recover its independence.

The terms of the agreement described in September call to borrow funds from the Department of the Treasury to pay the rest of its debt to the Federal Reserve, leaving Treasury holds the majority of the ordinary shares of the company beleaguered society.

Once large insurer AIG world received more than 180 billion for Government bailout funds to help cover who disappeared during the collapse of the bubble of U.S. investment. The company, the "agreement final repairs" signed by AIG "-mark an important step in our progress to fully repay taxpayers," said in a statement.

"In terms of recapitalisation, AIG" shall have the right to raise up to $ 3 billion [and four billions of dollars with the consent of the Treasury Department] by 15 August 2011, "AIG said in a filing with the U.S. Securities and Exchange Commission (SEC)."

Also restructured agreement sets out the rights of the Department of the Treasury will have of the regime accelerated output because it begins to sell its monitoring stake in giant insurer.

"Today's announcement is an important step in the efforts of the Government said the long out of our investments in private companies as soon as possible while protecting taxpayers", Tim Massad, financial stability, acting Assistant Secretary said in a release. "When all is said and done, we believe taxpayers be retrieve every dollar invested in Geneva International Airport and good chance to make a profit."

The Treasury Board strives to sell at least 15 billion of its shares to the insurer in the first of a series of offers of stocks from the first quarter of 2011, people familiar with the matter, says the Wall Street Journal.

$ 15 Billion share sale represents about 25% participation of the Government, current stock price given AIG. Currently, the Government holds 79,8% of the company and is expected to increase its participation to 92.1% by converting the preferred shares that it owns in AIG shares.

The plan will revert to a careful balance that Government unloads 60 billion additional dollars in stock of Geneva International Airport for the next two years, hopefully without destabilizing society and by lowering the price of shares. While the Treasury wants to leave his participation as quickly as possible, the agreement will allow society only the limited ability to sell shares to maintain its position of capital or its insurance units.

The Government will have complete control over the terms, conditions and prices in which it participates, including primary offer by Geneva International Airport until less than 33% of the Department of the Treasury of AIG voting securities property.

Although AIG has the right to conduct two primary offerings per year, the Department of the Treasury may decide to participate in these offerings and to prevent the AIG does matter what stock market, according to the newspaper.

The actual size of the offerings of Geneva International Airport will depend on demand from investors for the stock, the company hopes to support a series of presentations of the investor in the coming months, anonymous sources, said the newspaper.

AIG also must retire 20 billion debt guaranteed at the Federal Reserve Bank of New York and transfer the other obligations of the New York Fed to the US Treasury. The Treasury Board sales won't happen until both parties worked an agreement for these transactions.

The Government can compel AIG to sell the shares it holds in two companies: AIA Group Ltd and MetLife Inc. (NYSE: MET). AIG owns part of IAA, an insurer Asian life after spinning company to help pay its debt. Geneva International Airport received the MetLife stock when it sold another unit of MetLife.

Geneva International Airport recently issued its first obligations over two years of effort on line 11 billion from $ 12 billion in cash "actual and potential" to support after debt reserve of New York is retired, Moody's Investors Service (NYSE: MCO) said AIG has been the biggest beneficiary of Government to the financial crisis and has been a lightning rod for critics who have questioned the Government's decision to save through the problematic active relief program (TARP).

In March, a report by the Congressional Budget Office said AIG capacity repay rescue funds is an open question, and as much as 36 billion in assistance to the company since the beginning of the financial crisis can never be repaid.

"When Geneva International Airport will be able to pay the Government completely for his help is currently unknown because exposure of the Federal Government to Geneva International Airport is linked to the future of Geneva International Airport, its restructuring effort health and its current performance more debt is exchanged for equity," the report said.

The Congress established to oversee TARP, monitoring Committee said in June that it is not known if AIG can generate enough value for shareholders to ensure that the Government gets repaid in full, concluding that taxpayers "remain at risk of serious losses."

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