Announcement
August 26, 2026
Brattle Expert Analysis Cited by Delaware Bankruptcy Court in Debt/Equity Opinion
On August 14, 2026, in AIG Financial Products Corp. v. Lee Arthurs et al., the Delaware Bankruptcy Court found that billions of dollars advanced by AIG to AIGFP were, in substance, equity rather than debt. In a decision which cites Brattle Principal David Plastino’s testimony multiple times, Judge Mary Walrath found that “while the parties in their contracts and other documents have called the [advances] a loan… this nomenclature does not reflect the reality of the transaction” and “…the economics of the transaction also provide evidence that the advances were not loans.”
The matter is proceeding in two phases, with any damages to be determined in the second phase.
