Sale of AIG plane lease unit to Chinese group at risk

Reuters 31 May 2013
May 31 (Reuters) – A Chinese group’s purchase of ILFC, one of the world’s largest airplane leasing companies, could collapse after insurer American International Group Inc said on Friday it did not receive a scheduled deposit payment.
Under terms of the agreement, the missed payment gives AIG the right to cancel the sale, though such a decision was not expected to be imminent. It is unclear from the agreement whether AIG would be entitled to some sort of break-up fee, and if so, how much.
AIG declined to comment, while a spokesman for the consortium was not immediately available to comment.
Missing a payment on a signed deal is highly unusual. Bankers and attorneys said it underscored the difficulties in dealing with a consortium of investors who may have differing opinions about how deals should get done and how much each party pays. The Chinese government’s involvement complicates matters even further.
Read more…