Fed approves financing for AIG’s aircraft unit
CHARLOTTE, N.C. — The New York Federal Reserve has signed off on American International Group Inc.’s latest cash infusion for its aircraft leasing unit, a lifeline aimed at keeping it in business until it can be sold.
International Lease Finance Corp., one of the world’s largest buyers of airliners, had warned that a failure to get new loans from AIG or elsewhere could threaten its survival.
AIG had already lent $800 million to the unit to cover its March spending. Thursday, an International Lease Finance executive said a $900-million AIG loan for April had been approved Wednesday by the New York Federal Reserve. The money will be received Monday; Lund said International Lease Finance had $600 million in debt maturing two days later.
The leasing unit said in a filing that AIG would continue to offer such loans until March 2010 or until the unit was sold, whichever came first.
“ILFC will continue to have adequate financing through March 2010, at least,†AIG spokesman David Monfried said. AIG shares fell 10 cents, or 8.3%, to close at $1.10 on Thursday.
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