New Chapter 11 Filing – AIG Financial Products Corp.
On December 14, 2022, Connecticut-based AIG Financial Products Corp., a wholly-owned direct subsidiary of American International Group Inc., filed a petition for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the District of Delaware (Case No. 22-11309). The Debtor reports $100 million to $500 million in assets and $10 billion to $50 billion in liabilities. According to the First Day Declaration, the Debtor was formed for the purpose of trading in the capital markets and offering corporate finance, structured finance, and financial risk management products, including complex derivatives transactions and, although the Debtor was initially profitable, it suffered billions of dollars of losses from its derivatives trading positions during the 2008-2009 financial crisis and has been subject to numerous lawsuits as a result of those losses. For the last 14 years, the Debtor has predominantly operated to wind down its remaining transactions after the financial crisis.
Cole Schotz does not represent the Debtor in this case. We are posting this for informational purposes only. If you have received a notice and have any questions, you should contact Debtor’s counsel.
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