ILFC sale due 'shortly': market sources

San Francisco
Source: Flightglobal.com
This story is sourced from Flightglobal.com

American International Group is due to announce an agreement regarding the sale its aircraft lessor ILFC shortly, say market sources.

Senior ILFC employees had their travel plans cancelled over the weekend, and were told to stay in the Los Angeles area in connection with an anticipated announcement, market sources indicate.

Sources say a European financier has been brought into the sales agreement, but to what extent was unclear at the time of press.

AIG's chief executive officer Robert Benmosche said on a third-quarter conference call that a decision regarding the sale, an alternative sale or an initial public offering would be reached in this fourth quarter.

It determined ILFC met the criteria for “held for sale” and discontinued operations accounting at 30 September and 31 December 2012.

In December 2012, AIG agreed to sell a stake of up to 90% of ILFC to a Chinese consortium of investors. The sale has been ongoing as the consortium missed earlier deadlines in the sale process.

ILFC could not be reached for comment at the time of press.

The lessor reported a net loss of $682 million for the third quarter due to higher impairment charges, mainly for Airbus A340-600s. It reported a $17.6 million profit in the year-earlier period.

ILFC incurred a $1.1 billion aircraft impairment charge in the quarter relating to 36 aircraft, mainly Airbus A340-600s, compared with a $61.2 million write-down in the third quarter of 2012.

It recorded provisions for losses totalling $93.9 million related to four asset value guarantees on Airbus A340-600 aircraft.