American International Group has decided not to sell its aircraft leasing unit, International Lease Finance Corp, the Financial Times said, citing people close to the situation.
AIG has realized that it will not reap a big profit from the divestment of its aircraft leasing unit, prompting it to scrap the sale plans, the paper said.
On Monday, Standard & Poor’s cut its ratings on International Lease Finance Corp, saying that AIG may hold out for years before selling the company.
AIG’s decision to shelve the leasing unit sale plan could result in the departure of Steven Udvar-Hazy, ILFC’s co-founder, who was leading a consortium trying to buy parts of the company, according to the paper.
AIG, which has been propped up by around $180 billion in government funds, has struggled to find buyers due to the aircraft leasing company’s high debt load of around $30 billion.
AIG could not be immediately reached for a comment by Reuters outside of regular U.S. business hours.
(Reporting by Sakthi Prasad in Bangalore; Editing by Valerie Lee)
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