8-K/AMaterial AgreementsExhibits & Filings

AMERICAN INTERNATIONAL GROUP, INC. 8-K/A Report, Material Agreement (Mar 16, 2009)

Filed March 16, 2009For Securities:AIG

Summary

This 8-K/A filing from American International Group (AIG) on March 16, 2009, primarily serves as an amendment to a previous filing and discloses the entry into a "Shortfall Agreement" dated November 25, 2008. This agreement is between Maiden Lane III LLC and AIG Financial Products Corp. While the full details of the agreement are not provided due to redactions for confidential treatment, its existence signals a material definitive agreement being put in place concerning financial arrangements. Investors should note the date of the agreement (November 25, 2008) and the filing date (March 16, 2009). The delay in filing and the partial redaction suggest the agreement is complex and potentially sensitive, likely related to AIG's financial restructuring and its dealings with entities established to manage its distressed assets, such as Maiden Lane III LLC, which was an indirect subsidiary of the Federal Reserve Bank of New York at the time. This filing offers a limited view into AIG's ongoing efforts to stabilize its financial position.

Key Highlights

  • 1Disclosure of a 'Shortfall Agreement' dated November 25, 2008, between Maiden Lane III LLC and AIG Financial Products Corp.
  • 2The filing is an Amendment (8-K/A) to a previous report, indicating updates or further disclosures regarding a material event.
  • 3Portions of the Shortfall Agreement are redacted due to confidential treatment requests, suggesting sensitive financial terms.
  • 4Maiden Lane III LLC's involvement implies significant financial restructuring and potential government-related financial support or asset management.
  • 5The filing pertains to a material definitive agreement, which is a key indicator of significant business developments.
  • 6Filed on March 16, 2009, nearly four months after the agreement's effective date, suggesting a complex and potentially lengthy review process.

Frequently Asked Questions

The Shortfall Agreement is a material definitive agreement entered into by AIG Financial Products Corp. and Maiden Lane III LLC. While specific details are redacted, such agreements typically outline responsibilities and financial arrangements related to potential losses or deficits, especially in the context of complex financial instruments or entities.

The redactions are made pursuant to a request for confidential treatment. This is common for agreements containing proprietary or sensitive financial information that could harm the competitive position of the parties involved if publicly disclosed.

Maiden Lane III LLC was an entity established by the Federal Reserve Bank of New York to purchase certain distressed assets from AIG. Its involvement signifies that the agreement is likely related to AIG's efforts to deleverage its balance sheet and manage the fallout from its significant credit default swap exposure, often under the umbrella of government assistance during the 2008 financial crisis.

The agreement was dated November 25, 2008, but filed on March 16, 2009. This four-month delay suggests the agreement was complex, required extensive negotiation, involved internal and external legal and financial reviews, or was contingent upon other events or approvals before being formally disclosed.