Brookfield Terminates Swap Deal with AIG
Brookfield Asset Management Inc. ("Brookfield") (NYSE: BAM) announced today that it has reached agreement with American Insurance Group, Inc. (NYSE: AIG) to terminate two related 25-year interest rate swap agreements executed in 1990 between Brookfield and AIG. As consideration for terminating the Swap Agreement, Brookfield agreed to pay a single lump sum payment of US$905 million to AIG. The Swap Agreement, which was accounted for in Brookfield's financial statements as at June 30, 2013 as an approximate $1.4 billion liability, was subject to litigation that had been pending in the United States District Court for the Southern District of New York and will be dismissed in conjunction with the consensual termination of the Swap Agreement.
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