Global alternative asset manager Brookfield Asset Management has reached agreement with American Insurance Group (AIG) to terminate two related 25-year interest rate swap agreements executed in 1990 between Brookfield and AIG.
Brookfield has agreed to pay a single lump sum payment of $905m to AIG. The agreement was accounted for in Brookfield’s most recent financial statements as an approximate $1.4bn liability, and was subject to litigation that had been pending in the US District Court for the Southern District of New York. The litigation has been dismissed following the agreement.
LAst week Brookfield raised $1bn for its latest timberlands fund, topping its initial target by $250m.
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