AIG Financial eyes another extension of its exclusive plan periods

By Sarah Lizee

Olympia, Wash., Oct. 27 – American International Group, Inc. subsidiary AIG Financial Products Corp. is seeking a third extension of its exclusive periods to file and solicit votes on a Chapter 11 plan, according to a motion filed Friday with the U.S. Bankruptcy Court for the District of Delaware.

Specifically, the company asked the court to extend the exclusive plan filing period by 120 days through March 8 from Nov. 9 and the exclusive solicitation period by 120 days through May 8 from Jan. 8.

AIG filed a plan and disclosure statement on the first day of its Chapter 11 case, but shortly after, former executives of the company sought dismissal of the case and requested that the court rule on the dismissal before considering approval of the disclosure statement.

The debtor consented to their request to delay any actions with respect to the plan and disclosure statement until after a dismissal hearing was held.

The court denied the motion to dismiss in early May.

During the second extension of the exclusive periods, the debtor, AIG and the former executives engaged in mediation, but the parties were unable to reach a settlement and agreed to the consensual and indefinite suspension of negotiations.

AIG said the exclusive periods should be extended since competing plans would only serve as a distraction from current efforts.

A hearing is scheduled for Nov. 27.

The Wilton, Conn.-based financial products company filed Chapter 11 bankruptcy on Dec. 14, 2022 under case number 22-11309.

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