AIG, Chartis unit sign $ 4.3 b credit agreements

Wednesday, 29 December 2010 00:06 - - {{hitsCtrl.values.hits}}

Bailed-out insurer American International Group and its unit Chartis Inc signed three separate credit agreements with their lenders, totalling $4.3 billion.

AIG signed two credit agreements worth $1.5 billion each for three years and another for 364 days, it said in a regulatory filing. Separately, Chartis signed a $1.3 billion letter of credit and reimbursement agreement with its lenders.

Under the new agreements, the lenders have the obligations to make loans, other credit extensions and ensure related effectiveness of most of the covenants binding on AIG, Chartis and some of their units.

JPMorgan Chase Bank acted as an administrative agent, the company said.