AIG 2009 Annual Report Download - page 53

American International Group, Inc., and Subsidiaries
The following table summarizes drawdown activity and amount remaining available under the Department of the
Treasury Commitment:
Inception Through
(in millions) December 31, 2009*
Drawdowns:
Capital contributions to insurance companies $ 1,389
Intercompany purchase of ILFC equity ownership 2,722
UGC related restructuring transactions 1,132
Temporary paydown of FRBNY Credit Facility 101
Total drawdowns 5,344
Original availability under commitment 29,835
Remaining available amount $24,491
* From January 1, 2010 through February 17, 2010, AIG had requested a draw down of an additional $2.2 billion under the Department of the
Treasury Commitment principally to improve the risk-based capital ratios of its General Insurance subsidiaries by redeeming securities of affiliates
held by those subsidiaries.
Additional details regarding liquidity sources are included in Liquidity of Parent and Subsidiaries below.
AIG’s Strategy for Stabilization and Repayment of its Obligations as They Come Due
Future Cash Requirements
AIG expects that the repayment of future debt maturities and the payment of the preferred returns and liquidation
preference on the Preferred Interests will be its primary uses of available cash. The net proceeds from any sale, initial
public offering or other monetization of AIA and ALICO will first be used to pay the Preferred Interests.
The following table summarizes the maturing debt of AIG and its subsidiaries for the next four quarters:
First Second Third Fourth
Quarter Quarter Quarter Quarter
(in millions) 2010 2010 2010 2010 Total
ILFC $ 738 $1,476 $2,052 $2,492 $ 6,758
AGF *729 573 5,142 106 6,550
AIG Matched Investment Program 500 — 897 834 2,231
AIGFP 924 460 273 246 1,903
AIG 889 — — 500 1,389
Other 36 25 516 24 601
Total $3,816 $2,534 $8,880 $4,202 $19,432
* American General Finance, Inc. On July 9, 2009, AGF converted the $2.45 billion of loans that it had previously drawn on its 364-Day Syndicated
Facility into one-year term loans. AIG has provided a capital support agreement for the benefit of the lenders of these termed-out loans, which must
be repaid by July 9, 2010.
AIG’s plans for meeting these maturing obligations are as follows:
• ILFC’s sources of liquidity available to meet these needs include future cash flows from operations, aircraft
sales, and potentially additional secured financing arrangements (see Liquidity of Parent and Subsidiaries
below). If ILFC does not receive sufficient secured financing, AIG expects that ILFC’s current borrowings and
future cash flows from operations, including aircraft sales, may be inadequate to permit ILFC to meet its
existing obligations. AIG is exploring restructuring opportunities for ILFC. AIG intends to provide support to
ILFC through February 28, 2011 to the extent that secured financing, aircraft sales and other sources of funds
are not sufficient to meet liquidity needs.
• AGF anticipates that its primary sources of liquidity will be customer receivable collections and additional
on-balance sheet securitizations and, to a lesser extent, portfolio sales (see Liquidity of Parent and
45 AIG 2009 Form 10-K