Federal Reserve Said to Offer $5 Billion Credit for AIG’s ILFC

Federal Reserve Said to Offer $5 Billion Credit for AIG’s ILFC
By Zachary R. Mider – Bloomberg.com

April 7 (Bloomberg) — The U.S. Federal Reserve plans to direct a $5 billion line of credit to American International Group Inc.’s aircraft-leasing unit in an effort to prepare it for sale, said three people with knowledge of the matter.

AIG, once the world’s largest insurer, is looking for buyers for divisions including Los Angeles-based International Lease Finance Corp. to repay parts of a $182.5 billion government bailout. AIG is seeking to sell the unit, run by Steven Udvar-Hazy, to a group of investors.

The credit line may reassure potential buyers of ILFC that the aircraft-leasing business will remain viable once separated from the AIG umbrella, the people said, declining to be identified because the talks are private. New York-based AIG may use Fed money to provide the credit to ILFC, one person said.

David Skidmore, a spokesman for the Fed, declined to comment as did AIG’s Christina Pretto.

To contact the reporter on this story: Zachary R. Mider in New York at zmider1@bloomberg.net
Last Updated: April 7, 2009 16:46 EDT

Federal Reserve Said to Offer $5 Billion Credit for AIGs ILFC – Bloomberg.com.

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