Since its near-collapse, American International Group (AIG) has been selling all kinds of assets - but it apparently doesn't want to part with its Century City-based aircraft leasing company, the Los Angeles Times reported.
Earlier in the week, the troubled insurance giant disclosed that it lent the unit, International Lease Finance, US$2 billion to pay off debt that was due last week.
It marked the second time that AIG pumped federal bailout money into ILFC, signaling that AIG and the federal government want to keep the unit - at least in the short term.
The latest move is likely to frustrate ILFC's chief executive, Steven Udvar-Hazy, who in recent months has been trying to line up financial partners to buy back part or all of ILFC, a company he once owned, analysts said.
Udvar-Hazy became a billionaire and one of the richest men in Los Angeles after he sold ILFC to AIG in 1990. He was allowed to keep running the company after the sale.
But after one of the biggest government bailouts ever, the US government took controlling interest in AIG last year, hamstringing Udvar-Hazy's ability to manage the company.
AIG and the government don't want to sell ILFC particularly in this economic environment, Pilarski said. "There's no upside to selling the company right now," he said. "In three years, ILFC might sell for twice what it would right now. So why get rid of it?" |
