AIG Completes Preferred Stock Sale to Government

American International Group has completed a preferred stock sale to the government as part of a previously announced plan to receive additional financial support, according to a regulatory filing.

New York-based AIG says in a Securities and Exchange Commission filing that it sold preferred stock and issued warrants to the government in exchange for $29.84 billion.

The additional funding was announced last month when AIG disclosed a fourth-quarter loss of $61.7 billion, the largest ever quarterly corporate loss in U.S. history.

As part of the deal, AIG must avoid bankruptcy and the government must remain the majority owner of the insurer.

In September, the government rescued AIG amid the mushrooming credit crisis.