AIGFP Completes Energy Assets Sales For $1.9 Billion

NU Online News Service, Aug. 11, 3:40 p.m. EDT

The American International Group's AIG Financial Products Corp. said it has completed the sale of its energy and infrastructure investment assets for aggregate net proceeds in excess of $1.9 billion.

AIGFP was the unit of AIG whose losses required the company to reach out for billions in government loans and credit.

Gerry Pasciucco, AIGFP chief operating officer, said, "The completion of the sales effort for this portfolio is a significant milestone in the ongoing process of winding down AIGFP's business. The aggregate net proceeds realized for AIG represents very strong execution in challenging market conditions."

The announcement of the latest transaction noted that the AIGFP disposition effort, which began during the fall of 2008, concluded with AIGFP's sale of its lease equity interest in the Bruce Mansfield power generation plant operated by FirstEnergy Corp.

Sale of the power plant follows recent closings of three other sales: a tax equity interest in the Stanton wind farm in west Texas and two lease equity interests in portfolios of rail cars operated by BNSF Railway Company.

AIGFP has previously announced certain other asset sales from the portfolio, including its interest in Tenaska Marketing Ventures, its interest in two volumetric production payment transactions and its stake in three operating Spanish solar photovoltaic power plants.

"These recent asset sales provide a positive conclusion to a very successful disposition program for AIGFP's energy and infrastructure portfolio," Mr. Pasciucco said.