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ITEM 7 / LIQUIDITY AND CAPITAL RESOURCES.....................................................................................................................................................................................The following table presents AIG Parent’s liquidity:As of(In millions) December 31, 2012Cash and short-term investments (a)Available capacity under Syndicated Credit Facility (b)Available capacity under Contingent Liquidity Facility (c)Total AIG Parent liquidity sources$ 12,5863,037500$ 16,123(a) Includes reverse repurchase agreements totaling $8.9 billion, which are secured short term investments.(b) AIG entered into an amended and restated syndicated bank credit facility on October 5, 2012. For additional information relating to this creditfacility, see Credit Facilities below.(c) For additional information relating to the contingent liquidity facility, see Contingent Liquidity Facilities below.Sources and Uses of Liquidity and Capital Resources of AIG ParentSourcesDuring 2012, we:• sold our entire interest of approximately 3.9 billion AIA ordinary shares for gross proceeds of approximately$14.0 billion (excluding proceeds from the sale of AIA ordinary shares held by AIA SPV to an AIG PropertyCasualty subsidiary);• received approximately $8.5 billion in distributions from the FRBNY’s dispositions of ML III assets;• collected approximately $5.2 billion in cash distributions from subsidiaries, including:• approximately $2.9 billion in note repayments from AIG Life and Retirement subsidiaries funded by payments ofdividends from subsidiaries of which $1.6 billion represented proceeds from the FRBNY’s sale of ML II assets;• approximately $1.5 billion in cash dividends from AIG Property Casualty;• $400 million in dividends from the AIA SPV, representing the proceeds from the sale of shares of AIA held bythe AIA SPV to an AIG Property Casualty subsidiary;• received non-cash dividends of approximately $1.0 billion in the form of municipal bonds from AIG PropertyCasualty;• issued $750 million principal amount of 3.000% Notes Due 2015 and $1.25 billion principal amount of 3.800%Notes Due 2017. These proceeds were used to continue to reduce the risk of, and better match the assets andliabilities in, the MIP (described more fully in Other Operations – Direct Investment Book below);• issued $1.5 billion principal amount of 4.875% Notes Due 2022. These proceeds are being used for generalcorporate purposes which are currently expected to include the repayment of debt maturing in 2013;• issued $250 million principal amount of 2.375% Subordinated Notes Due 2015. Proceeds from this offering arebeing used for general corporate purposes; and• received approximately $1.0 billion that was released to AIG from an escrow that secures indemnifications providedto MetLife under the ALICO stock purchase agreement (see Note 16 to the Consolidated Financial Statementsfor additional information)...................................................................................................................................................................................................................................AIG 2012 Form 10-K 125