American International Group Inc. (AIG) received delayed payments yesterday. This was a part of the deal they have with Chinese investors to sell the firm's International Lease Finance Corp. (ILFC) unit.
A regulatory filing was made by AIG last week. AIG also said that the payments were not made as scheduled. Last December, New China Trust Co. headed by its chairman Wend Xianding approved to buy 80% of the aircraft lessor. The deal was priced at US$4.2 billion and required a 10% deposit.
Last June 4, CEO Robert Benmosche said that AIG has the right to terminate the deal after the missed payment. The reason behind eliminating ILFC is to simplify AIG and focus solely on insurance. Said transaction needed approval from both US and Chinese regulators.
Benmosche added that the company faces a difficult situation between two complicated governments over a complex property.
Last June 2, Josh Stirling, analyst at Sanford C. Bernstein & Co. said the buyer's delayed payment last week may cause administrative delays in China rather unease the current deal.
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