AIG Announces Deal to Terminate Swap Deal with Brookfield Asset Mgmt
American International Group, Inc. (NYSE: AIG) today announced that it has agreed to the consensual termination of an interest rate swap agreement with Brookfield Asset Management, Inc., in exchange for the payment from Brookfield to AIG of $905 million.
This swap agreement was part of the remaining derivatives portfolio of AIG Financial Products ("AIGFP") and carried on AIG's June 30, 2013 balance sheet at $900 million, and the settlement is not expected to have an impact on AIG's profit or loss. This swap agreement was subject to previously disclosed litigation which the parties have agreed to dismiss. Additional information regarding this litigation was contained in AIG's Quarterly Report on Form 10-Q for the quarter ended June 30, 2013. The proceeds of the settlement are expected to contribute towards the continued wind down of the remaining derivatives portfolio of AIGFP, which is a part of Global Capital Markets.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.