American International Group Inc. (AIG) raised approximately $36.71 billion, $27.71 billion of which was in cash proceeds through its sale of one insurance subsidiary, American Life Insurance Co. (ALICO) and the initial public offering of a second, AIA Group Ltd. (AIA).
AIG expects to use the cash proceeds from these transactions to repay the credit facility extended to AIG by the Federal Reserve Bank of New York (FRBNY) and to make payments on other interests owned by the government, under terms of the agreement in principle announced by AIG as part of its recapitalization plan on Sept. 30, 2010.
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