Posted on 18 Jun 2013 by Neilson
The American International Group (AIG) disclosed on Monday that it had given a group of Chinese investors more time to complete a deal to buy its big airplane-leasing unit, nearly three weeks after the consortium missed a down payment.
In a regulatory filing, AIG said it had agreed to extend the time at which either party could terminate the deal to July 31. In the meantime, AIG and its unit, the International Lease Finance Corporation, can continue to look at taking the business public as an alternative option.
AIG also has the right to call off the deal if it believes that certain conditions tied to regulatory matters are unlikely to be resolved by July 31.
The insurer agreed in December to sell up to 90 percent of the business to a group of Chinese investors that includes the New China Trust Company, the China Aviation Industrial Fund and P3 Investments.
The deal valued the unit at about $5.28 billion. The sale is part of AIG's effort to streamline itself as it continues to recover from the financial crisis.