WASHINGTON–American International Group shareholders will apparently get no say in the running of the company under the conditions of the loan the U.S. government is providing the company to help deal with its liquidity crisis.
Moreover, until it is reconfigured and pays off the loan, AIG will have to pay 8.5 percent interest even on the unused portion of the loan, and was forced to pay a 2 percent upfront commitment fee to the government in order to get the loan, according to details released yesterday.
On the $35 billion that AIG has borrowed so far the company will pay 8.5 percent on top of the current LIBOR rate of 3 perecent.
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