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AIG lends its aircraft leasing unit another $2B

AP
posted: 36 DAYS 23 HOURS AGO
Text SizeAAA
NEW YORK -American International Group Inc. said Monday it loaned another $2 billion in government-backed funds to its aircraft leasing unit to help its short-term financing needs.
The loan was made with funds from the Federal Reserve Bank of New York, AIG said in a regulatory filing. The financial services giant is 80 percent owned by the U.S. government following a massive bailout last year.
The latest loan to International Lease Finance Corp. came on top of $1.7 billion AIG lent in March, which was used to repay debt and other obligations. The loans are backed by aircraft that make up the unit's fleet.
AIG earlier this year scrapped a potential sale of International Lease Finance. The insurer has sold off several other units as it attempts to reduce its size and pay back the government's investment.
Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
2009-10-19 17:33:48
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