SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
August 19, 1999
AMERICAN GENERAL CORPORATION
(Exact name of registrant as specified in charter)
Texas 1-7981 74-0483432
(State or other (Commission File (IRS Employer
jurisdiction of Number) Identification
incorporation) Number)
2929 Allen Parkway, Houston, Texas 77019
(Address of principal executive offices)(Zip Code)
Registrant's telephone number, including area code:
(713) 522-1111
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Item 5. Other Events.
As previously reported by the registrant, the Chancery
Court of the First Judicial District of Jones County,
Mississippi rendered a judgment on May 18, 1999, awarding
approximately $500,000 in compensatory damages and $167
million in punitive damages against A.G. Financial Service
Center, Inc. ("Financial Service Center"). Financial
Service Center is an indirect subsidiary of registrant and
was formerly named American General Financial Center.
The case was brought by 29 individuals who in the mid-1990s
each purchased a satellite dish for approximately
$2,500 from independent, unaffiliated dealers and
distributors who arranged financing for the satellite
dishes through Financial Service Center. Financial Service
Center believes the judgment is unwarranted and contrary to
law. Financial Service Center has appealed the judgment
and believes that it has substantial bases for success on
appeal. Financial Service Center currently is named as a
defendant in other pending cases, most of which are in
Mississippi, involving the financing of satellite dishes.
On August 19, 1999, Financial Service Center filed a
voluntary petition to reorganize under Chapter 11 of the
United States Bankruptcy Code with the United States
Bankruptcy Court for the Southern District of Indiana. The
decision to reorganize was necessitated by the
unprecedented and unjustified judgment rendered against
Financial Service Center by the Mississippi state court.
Prior to the bankruptcy filing, Financial Service Center
had assets of approximately $7 million with virtually no
ongoing operations.
The filing for reorganization under Chapter 11 is
intended to provide a fair and orderly process for managing
the appeal and the other claims against Financial Service
Center. The bankruptcy filing by Financial Service Center
will not have a material adverse effect on the registrant's
consolidated results of operations and financial condition.
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SIGNATURE
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this
Report to be signed on its behalf by the undersigned
thereunto duly authorized.
AMERICAN GENERAL CORPORATION
Dated: August 20, 1999 By:/S/ MARK S. BERG
Mark S. Berg
Executive Vice President and
General Counsel
