In his letter to the Treasury, Mr. Liddy said that A.I.G. was required to pay about $165 million in bonuses on or before March 15. The company had already paid $55 million in December, but the rest was about to come due.
The bonus plan covers 400 employees, and the bonuses range from as little as $1,000 to as much as $6.5 million. About seven executives at the financial products unit were entitled to receive more than $3 million in bonuses.
Under a deal reached this week, A.I.G. agreed that the top 50 executives in the financial products division would get half of the $9.6 million they were supposed to get by March 15. The second of their bonuses would be paid out in two installments in July in September.
The bonuses will be paid to executives at American International Group’s Financial Products division, the unit that wrote trillions of dollars’ worth of credit-default swaps that protected investors from defaults on bond backed by subprime mortgages.