AIG silent on offer for aircraft leasing unit ILFC
A New York aviation-services company has offered to buy International Lease Finance Corp., the biggest customer of Boeing and Airbus, for more than $12 billion in a deal that would sever the aircraft-leasing firm's ties to the nation's biggest government bailout.
Los Angeles Times
LOS ANGELES — A New York aviation-services company has offered to buy International Lease Finance Corp., the biggest customer of Boeing and Airbus, for more than $12 billion in a deal that would sever the aircraft-leasing firm's ties to the nation's biggest government bailout.
But ILFC parent American International Group, the insurance giant that received $182.5 billion in bailout money from the federal government, has refused to respond or even comment on the offer.
Robert Rose, president of Allied Aviation Services Inc., one of the nation's largest providers of fuel for commercial aircraft, said he has written AIG and the Treasury Department looking to discuss a possible deal for more than a year, but has been "stonewalled."
The offer includes Allied's top management working for no more than $1 a year until the leasing company's debt is paid off. AIG also has refused requests for comment from the Los Angeles Times.
"From my standpoint, I'd like to see ILFC stay intact," Rose said. "The company is strong. It just needs to be cut loose from AIG. We will clean up the financials and give the company some breathing room."
In an unusual proposal, Allied would give no money upfront, Rose said. Instead, it wants a three- to five-year government loan to cover the purchase price. During that time, Allied would assume ILFC's debt and restructure the company.
Allied has the backing of the Teamsters union, which wrote to the Treasury Department saying the offer provides better job protection than those of private equity firms.
Rose said AIG might be shunning his company because it favors an offer from Steven Udvar-Hazy, ILFC's CEO and a co-founder.