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.
Cole Schotz’s nationally renowned Bankruptcy & Corporate Restructuring group practices in Delaware, Maryland, New Jersey, New York, and Texas.
As the law continues to evolve on these matters, please note that this article is current as of date and time of publication and may not reflect subsequent developments. The content and interpretation of the issues addressed herein is subject to change. Cole Schotz P.C. disclaims any and all liability with respect to actions taken or not taken based on any or all of the contents of this publication to the fullest extent permitted by law. This is for general informational purposes and does not constitute legal advice or create an attorney-client relationship. Do not act or refrain from acting upon the information contained in this publication without obtaining legal, financial and tax advice. For further information, please do not hesitate to reach out to your firm contact or to any of the attorneys listed in this publication.
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