May 10, 2024
The Delaware bankruptcy court issued a decision May 9, 2024 allowing claims by 46 former AIG FP executives against AIG in a dispute over a $65 billion credit agreement to move forward.
The claims seek to recharacterize the agreement AIG had with AIG FP as an equity infusion, not a loan. The claims also seek to hold AIG FP’s parent, AIG, liable because substantially all of the assets of AIG FP were transferred to or for the benefit of AIG.
In the decision, Judge Mary Walrath found that the claims made by the executives were plausible and allowed them to move forward.
“We are pleased with Judge Walrath’s decision and look forward to rigorously pursuing our clients’ interests in this dispute,” said Steven W. Perlstein of Kobre & Kim, who represents the former executives.