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ILFC pursues sale of USD3.5 billion in aircraft

3-Mar-2010 10:16 AM

International Lease Finance Corp (ILFC) stated it is seeking to generate up to USD3.5 billion from asset sales to fund new aircraft and meet debt obligation (Bloomberg/Dow Jones/Reuters, 03-Mar-2010). The unit has already borrowed USD3.9 billion from its parent, American International Group (AIG) and has USD6.8 billion in debt due in 2010. The leasing company added that it has received offers for part of its 993-aircraft fleet that could generate up to USD3.5 billion, although the sale would likely result in a realised loss. Any transaction would have to be approved by the Federal Reserve Bank of New York, which holds jurisdiction over AIG since the company was provided a USD182.3 billion bailout. The company also stated that two staff members, including acting CEO, John Plueger, are subject to the compensation rules imposed by the US Government's pay czar. AIG, last week, stated it would extend financial support to its aircraft-leasing unit until Feb-2011 while evaluating offers for parts of the business.