And There's More .....

The FRBNY announced more sales on June 18th.

In addition, they announced (finally) that all the Maiden Lane loans (including ML I) had been fully repaid with interest.

It now seems likely that AIG will receive at least their $5 billion principal investment and $600 million interest by early july.

The current pace of sales, if it continues, will work through the remaining securities in a matter of weeks. 

My current guess is that AIG will have $7 billion in cash available for an early July purchase of Treasury shares. 

Additional Maiden Lane III Sales

On 5 June, 2012, the FRBNY announced that they were accepting bids for about $7 billion face value in CDO's.

Combined with the previous announced CDO sales, the cash from this offering should go a long way towards repaying AIG's $5 billion equity position in Maiden Lane III.

This is entirely consistent with my 26 May posting regarding sources of cash.

Below are the remaining holdings:

ILFC - The Basics

AIG has been reporting ILFC as if it were a stand alone entity in anticipation of an IPO.

Financial statements are available on its investor relations web page.

AIG has taken almost $3.5 billion in impairment charges over the last two years (roughly 10% of the book value of the fleet).

Selected Financial Data from 2011 10k:

General observations:

The revenue is reasonably stable.

AIG was too aggressive with respect to depreciation, leading to the impairment charges in 2010 and 2011.

AIG has reduced unsecured debt by almost 50% and total debt by roughly 20%.

There is no compelling reason for AIG to be in this business, and their decision to sell makes sense. The only issues are how soon and how much.