How a Deal for Airline Leasing Company Was Aborted at Take-off

The acquisition of International Lease Finance Corp. (ILFC) by a consortium of Chinese investors, a deal valued more than US$ 4 billion, would have set a record for the largest Chinese purchase of United States assets. However, when a key deadline passed on August 31, the deal was almost pronounced dead.

On August 2, Robert Benmosche, CEO of insurance giant American International Group (AIG), ILFC's owner, confirmed on a conference call that AIG had not yet received the remaining 90 percent of the purchase price from the Chinese investment group after the down payment of US$ 500 million was received in May. According to the agreement, the full amount for the transaction should have been settled by July 31.