AIG 2010 Annual Report Download - page 74

American International Group, Inc., and Subsidiaries
AIG’s plans for meeting these maturing obligations are as follows:
• ILFC’s sources of liquidity available to meet these needs include existing cash, future cash flows from
operations, debt issuances and aircraft sales (subject to market and other conditions) (see Liquidity of Parent
and Subsidiaries — Financial Services — ILFC). During 2010, ILFC significantly increased its liquidity
position through a combination of new secured and unsecured debt issuances of approximately $9.8 billion
and an extension of the maturity date of $2.16 billion of its $2.5 billion revolving credit facility from October
2011 to October 2012. In December 2010, ILFC paid down $800 million of this revolving credit facility. The
amended facility prohibits ILFC from re-borrowing amounts repaid under this facility for any reason;
therefore the size of the outstanding facility is $1.7 billion. Also, in January 2011 ILFC entered into an
unsecured three-year $2.0 billion revolving credit facility. During 2010, ILFC agreed to sell 66 aircraft to
third parties, 57 of which were sold. These sales generated approximately $2.1 billion in gross proceeds
during 2010.
• AIG borrowings supported by assets consist of debt under the MIP as well as AIGFP debt being managed in
the Direct Investment business. Approximately $3.7 billion of debt maturities in the Direct Investment
business through December 31, 2011 are supported by maturities of investments and short term cash
investments. Mismatches in the timing of cash inflows on the assets and outflows with respect to the
liabilities may require assets to be sold to satisfy maturing liabilities. Depending on market conditions and
the ability to sell assets at that time, proceeds from sales may not be sufficient to satisfy the full amount due
on maturing liabilities. Any shortfalls would need to be funded by AIG Parent.
58 AIG 2010 Form 10-K